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VOL. 11, ISSUE 11 (2025)
An empirical study on the interrelationships among the BRICS stock markets during financial Crisis of COVID-19
Authors
Dr. Mitrendu Narayan Roy, Dr. Siddhartha Sankar Saha
Abstract
The five main emerging economies of the globe are represented by the
BRICS economic bloc, which is made up of Brazil, Russia, India, China, and
South Africa. These nations have cooperated with each other in the areas of
financial aids, trade, and technical know-how despite their geopolitical
differences. This goes a long way towards their sustainable economic
integration. Through the routes of such economic integration, the economic
vulnerabilities generated in any one of the BRICS countries during the first
wave of COVID-19 swiftly spread to the others. In light of the global financial
crisis caused by COVID-19, it is crucial to investigate if their economic
interdependence has affected their stock market ties. The study looks at the
causation and long-term co-integrating relationships across the brics stock
markets in the backdrop of global catastrophe caused by COVID-19, covering a
study period from February 24, 2020, to June 23, 2020. The COVID-19 pandemic
and its economic aftershock were primarily to blame for the steep decline in
the performance of the global stock market from February to June 2020. Five
stock indices—IBOVESPA (Brazil), MOEX (Russia), SENSEX (India), SSECI (China),
and JTOPI (South Africa)—selected using a judgment sampling technique are used
to represent the stock market performances of each BRICS country. The Johansen
co-integration technique has been used to assess long-term co-integrating
relationships among the stock indices. It has been noted that the market has
long-term cointegrating relationships among one another. Short-term causation
between the markets has since been examined using the Vector Error Correction
Model (VECM) Wald test. However, it was shown that there was a two-way causal
relationship between the Indian market and the South African and Russian
markets separately.
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Pages:52-58
How to cite this article:
Dr. Mitrendu Narayan Roy, Dr. Siddhartha Sankar Saha "An empirical study on the interrelationships among the BRICS stock markets during financial Crisis of COVID-19". International Journal of Commerce and Management Research, Vol 11, Issue 11, 2025, Pages 52-58
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