BRIC-A Stock Markets and their Relations with the US stock Market: A Pre & Post Pandemic Analysis

Abstract

One of the biggest global shocks in recent memory, the COVID-19 epidemic has had a huge effect on financial markets all across the world. This study looks at the dynamic interdependence of the US stock market and the BRIC-A stock markets throughout three different time periods: before, during, and after the pandemic. The findings reveal that this unprecedented crisis altered the nature and extent of stock market linkages. The long-term link between the US and Indian stock markets has not changed, according to the results of the Johansen cointegration test, but the relationships with China and Russia have seen notable alterations. Additionally, the Granger causality test shows that the US stock index had short-term associations with each of the BRIC- A countries prior to the epidemic. But in the aftermath of the pandemic, only the BSE and SSE indices maintain a short-run relationship with the US stock index. These findings highlight the evolving dynamics of global market interconnectedness, during the time of pandemics