ECONOMIC RECOVERY AND STOCK MARKET TRENDS: A POST-PANDEMIC ANALYSIS-A STUDY


Mr. Balaraju Bharath Varma, Dr. R S Ch Murthy Chodisetty
Department of Management Studies, Vardhaman College of Engineering, Shamshabad, Hyderabad, Telangana.
Abstract
Purpose This research explores emerging trends in the global stock market after the COVID-19 pandemic, emphasizing economic recovery, investor behavior, market volatility, and regulatory influences. The pandemic resulted in significant financial turmoil, leading to both market crashes and subsequent rapid recoveries. This study investigates how markets have adapted to post-pandemic realities, analyzing the role of fiscal stimulus, monetary policies, and technological innovations in stabilizing and shaping stock market trends. Design/Methodology/Approach A mixed-method research design is used, incorporating both qualitative and quantitative approaches. Macroeconomic indicators, financial statements, and stock indices—including S&P 500, Nasdaq, FTSE 100, NIFTY 50, and Nikkei 225—are analyzed to evaluate performance trends. Predictive models such as GARCH and ARIMA assess market volatility, while sentiment analysis using NLP examines investor behavior. Regression analysis identifies relationships between stock performance and key economic indicators like GDP growth, inflation, and interest rates. Findings Despite initial disruptions, global stock markets have demonstrated resilience. Technology, healthcare, and renewable energy sectors have outperformed traditional industries. Retail investors, driven by digital platforms and commission-free trading, have played a crucial role in market movements. Government interventions, such as stimulus packages and monetary easing, have contributed to market stability. However, factors such as inflation, geopolitical tensions, and disrupted supply chains continue to pose risks, influencing investor sentiment and stock price fluctuations. Originality/Value This study provides an innovative approach by integrating finance, economics, behavioral science, and technology to examine stock market trends. Unlike previous studies, it offers a holistic perspective on how digital finance, investor psychology, and macroeconomic policies interact in shaping post-pandemic market behavior. The findings provide valuable insights for investors, financial analysts, and policymakers aiming to navigate evolving financial landscapes and optimize investment strategies. Research Limitations/Implications The study primarily relies on historical stock market data, which may not fully capture future uncertainties. Sentiment analysis, while insightful, may be influenced by biases in data interpretation. Additionally, predictive models such as ARIMA and GARCH estimate future trends but cannot account for unforeseen economic disruptions. The implications suggest a need for adaptive investment strategies, improved financial regulations, and enhanced risk assessment frameworks to strengthen market resilience in the face of uncertainty. Practical Implications Investors, financial advisors, and corporate leaders can use this research to understand key market drivers and develop risk-mitigating strategies. The study highlights the importance of portfolio diversification, financial technology adoption, and adaptive investment planning. Policymakers can leverage these insights to refine regulatory frameworks, ensuring a more stable and transparent financial market that accommodates both institutional and retail investors. Social Implications The shift in market participation, driven by digital finance, has broad social implications. Increased retail investor participation has democratized stock trading, yet it also introduces risks such as speculative bubbles and misinformation. Financial literacy programs and regulatory oversight are crucial in ensuring responsible investment behavior. Additionally, the growing influence of ESG investing reflects societal shifts towards sustainable and ethical investment practices, influencing corporate accountability and long-term economic stability.
Keywords: Stock Market Trends, Post-Pandemic Economy, Investment Behavior, Market Volatility, Behavioral Finance, Financial Technology, ESG Investments
Journal Name :
International Journal of Southern Economic Light (JSEL)

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Published on : 2025-03-13

Vol : 13
Issue : 3
Month : March
Year : 2025
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