This book analyses the dynamics of Indian stock market with a special emphasis during the
period following emergence of Covid-19. Coming from the instability in stock market following
Covid-19 it delves deeper into the dynamics and unfolds the causal relationship between
various economic fundamentals and the stock prices. Observing short-term herding in the stock
market following Covid-19 the book's finding suggests that investors in the Indian stock
market made investment choices irrationally during Covid-19 crisis periods. It also showcases
how the stock market became inefficient following the emergence of pandemic and did not follow
the fundamentals. Interestingly the findings suggest no relationship between stock returns and
real economic activities in India. The format of presentation makes the book well suited not
only for students academics policy makers and investors in the stock markets but also people
engaged or interested in business and finance. The book would thus be of interest to both
specialists and the laity. Analysis contained in this book will help different readership
groups in different ways. Researchers from economics and finance disciplines will be able to
learn about frontiers in the theoretical paradigms discussed in the book advanced econometric
techniques applied in the book will also be useful for their own research. The macroeconomic
insights and insights from behavioural economics can expand the knowledge of corporate sector
useful in making real life decisions. Finally it will help policy makers like SEBI
(Securities and Exchange Board of India) to formulate appropriate regulatory policies so as to
minimize possibility of speculative bubbles as experienced during the pandemic period in the
Indian stock markets.
