Author(s): Kotishwar A
The present paper made an attempt to investigate the impact of covid-19 virus spread on the stock markets. The study has considered the positive cases growth of six countries (USA, Spain, France, Italy, China and India), which were affected worst from 11th, March to April of 2020 (WHO declared the COVID 19 as pandemic on 11 March 2020). The study applied the VECM to know the relationship and observed that the Covid-19 having the significant negative long run relationship with all the selected countries stock indices. The CAAR model has been applied and observed that the all the selected countries indices are positively reacted more in post period compared with the pre period. The study states that the investors are considering the long-term strategy and investing at every low level.