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This study examines whether investing in R&D reduces the impact of exogenous shocks like the COVID‐19 on stock market performance and accounting performance of manufacturing firms in India. For the sample of listed manufacturing firms, the paper finds that the firms engaged in R&D activities had lower negative cumulative abnormal return than those firms that did not invest in R&D in the pre‐pandemic period using multiple event windows. The result suggests that R&D investments can lower value erosion for the shareholders during a severe crisis period. Further, using a difference‐in‐difference fixed effects model, the study finds that manufacturing firms engaged in R&D activities in the pre‐pandemic period exhibited higher return on sales and growth of total income during the pandemic quarter vis‐à‐vis the non‐R&D firms. The favorable accounting performance indicates the possibility of firm‐level R&D being associated with the firm's ability to adjust its functioning during a crisis, thereby reducing the effect of the crisis. Finally, the study documents that government intervention to reduce the spread of the virus had a differential impact on firms based on their industry of operation. The findings have implications for investors, corporate managers, and policymakers in India. [ABSTRACT FROM AUTHOR]

We examine the effect of testing and social distancing measures on the severity of COVID19 across Indian states during the 68th day nationwide lockdown period. We also explore whether pre‐existing socio‐economic factors such as quality of health care and the ability to practice social distancing influences the effect of these policy measures across states. Using daily level data between April 1 and May 31 for 18 of the major states, we find that both testing and social distancing have a negative effect on COVID‐19 fatalities in India. Further, testing is more helpful in reducing CFR for states with lower per capita health expenditure and weaker medical infrastructure. This highlights how ramping up testing can aid states that have a weak health care system through the detection of infection, contact tracing and isolation. In contrast, social distancing measures are more effective in states that are less populous and have lesser people dwelling in single‐room houses. Our results confirm the role of pre‐existing institutional factors in shaping the effect of policy actions on health outcomes. [ABSTRACT FROM AUTHOR]

We examine the dynamics of the impact of the evolving policy response during the COVID‐19 pandemic on the equity market sentiment in India. We operationalise our study by examining the India VIX, the fear gauge of the Indian equity market as an indicator for the market sentiment, and the country level Government Response Index of the Blavatnik School of Government, Oxford University as an indicator for the policy response. The relation is examined through the Markov‐switching model using high‐frequency daily data from January 30, 2020, to May 31, 2021. The evidence suggests that the policy response has a positive impact on the market sentiment when the market is fearful. Further, the evidence suggests that both the high‐fear state and the low‐fear state of the market sentiment given by the model are short‐lived indicating heightened volatility and possible speculation during the ongoing pandemic in the Indian equity market. [ABSTRACT FROM AUTHOR]

The World Health Organization (WHO) declared the Coronavirus Disease (COVID‐19) a pandemic due to the huge upsurge in the number of reported cases worldwide. The COVID‐19 pandemic in India has become a public health threat, and if we go by the number of confirmed cases then the situation seems to be a matter of grave concern. According to real‐time data, the numbers of confirmed cases are growing exponentially. No doubt, substantial public health interventions both at the national and state levels are implemented immediately by the Government of India; there is a need for improved preparedness plans and mitigation strategies along with accurate forecasting. The present study aims to forecast the COVID‐19 outbreak infected cases in India. The data have been obtained from https://www.covid19india.org, https://www.worldometers.info/coronavirus, and ICMR reported publicly available information about COVID‐19 confirmation cases. We have used the double exponential smoothing method for forecasting the trends in terms of confirmed, active, recovered and death cases from COVID‐19 for emergency preparedness and future predictions. Findings reveal that the estimated value of point forecast is just 8.22% of the total number of confirmed cases reported on a daily basis across the country. It was observed that the deaths were lower for the states and union territories with a higher detection rate. It is suggested that by keeping in view the limited healthcare resources in the country, accurate forecasting, early detection, and avoidance of acute care for the majority of infected cases is indispensable. [ABSTRACT FROM AUTHOR]

To contain the spread of the Covid‐19 pandemic, the mandated social distancing and restricted market activities have adversely affected the employment and earnings of the poor who are considered the targeted beneficiaries of the Microfinance Institutions (MFIs). The MFI operation and more specifically fresh lending are under serious threat as the mode of operations primarily involve physical interaction while distributing credits at the clients' doorsteps, conducting periodic group meetings and carrying out regular collections. This short article attempts to analyze the various challenges that MFIs may encounter in their current and future operations due to the ongoing pandemic. It discusses how the government initiated coping mechanisms may help MFIs overcome or minimize the pandemic challenges. At the same time, MFIs' efforts towards continued services are expected to create a win‐win situation. [ABSTRACT FROM AUTHOR]