A Study On The Stock Prices Of Bank Nifty Pre And Post Financial Crises With Reference To The Global Financial Crisis (2007-08) And Covid 19 Pandemic (2019-20)

Abstract

A Stock Is A Security That Represents The Ownership Of A Fraction Of An Organization. Stock Price Refers To The Present Price That A Share Of Stock Is Trading For On The Market. Some Causes Of Changes In The Stock Prices Are The Law Of Supply And Demand, The Management Or Production Changes And Mention Of The Company’s Name. Apart From These, When Any Mishap Takes Place, It Will Also Lead To An Effect On The Stock Prices. One Such Mishap Is A Financial Crisis. So Far, We Have Seen Around 8 Such Financial Crises. This Study Is Done Within The Two Financial Crises I.E., The Global Financial Crisis (2007 – 09) And Global Pandemic (2019 – Till Date). This Study Is Intended To Conduct An Exploratory Analysis And Get Insights Into How A Financial Crisis Impacts The Stock Prices Of Nine Banks From The Nifty Bank. This Study Gives A Visual Understanding Of Important Factors Of The Stock Prices. A Financial Crisis Results In A Fall In GDP, A Fall In Stock Prices, Withdrawal Of Foreign Investments. In This Study, The Analysis Part Has Been Done Using Python Through The Jupyter Notebook. Tools Like Pair Plot, Standard Deviation, Pearson Correlation Matrix, Line Charts, Etc Are Used To Draw The Inferences. This Study Will Help Future Generations To Have An Understanding Of How The Market May Fall During A Financial Crisis And Will Help Them In Taking Investment Decisions During Any Such Crisis In The Future. The Analysis Has Given Deeper Insights Into The Fluctuations In The Stock Prices. It Has Been Found That When Compared With Each Other, Both The Crises Show Up Similar Results, Like Fall In The Stock Prices, Increase In Risk For Investing In Stocks, Fall In Gross Domestic Product, Fall In Nifty Bank Index.