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Market Behaviour in Times of Crisis: Comparing Islamic and Conventional Indices during COVID-191

  • Sumbul* Sumbul Corresponding author Research Assistant Department of Management Studies & Industrial Engineering, IIT(ISM) Dhanbad India ,  
  • Ziya Batul Rizvi Ziya Batul Rizvi Assistant Professor IMS Unison University, Dehradun. India
Received: March 20, 2025
Accepted: April 22, 2025
Published: June 18, 2025
Volume: 1 (1) | Page: 25-37

Abstract

The main objective of this study is to analyse the impact of COVID-19 before and after on the conventional and Islamic Index and the volatility of S&P CNX500 Sharia with the Nifty 50. For this purpose, we cover the time duration before and after the COVID-19 pandemic. The researcher chose the breaking date of 24/03/2020 because the first lockdown in India began on that date. Johansen Cointegration Test, Granger Causality Test in the short term, and GARCH model for volatility are the major tools used in this research. The correlation coefficient between the Conventional Index and Islamic Index and S&P 500 Sharia index is low. It’s observed that NIFTY50 has the highest performance in post-Covid-19. Before Covid-19 there was no relationship between Conventional Index and Islamic Index. Lastly, the high volatility of the index is marked by the post Covid 19 being close to one.

Keywords: Covid-19, islamic Index, GARCH, granger causality test

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