Repercussions of Black Swan Event on The Indian Stock Market-A Case Study of Domestic Investors

Abstract

As the stock market is constantly changing and is dependent on a wide range of unpredictable variables, predicting its behaviour is one of the most difficult tasks in the time-series prediction domain. Black Swan occurrences, which are very rare but sometimes deadly, can have a significant impact on the market. The stock market, like other financial markets, is vulnerable to what are known as ‘Black Swan’ occurrences, which are sudden and unexpected yet have a profoundly detrimental effect. If the successful stock trend can be forecast, regulators and investors may improve their trading tactics, lowering investment risk while increasing profits. First, this study examines the effect of the black swan event on the stock of the listed firms in which our sample of respondents invests, and then it compares the effectof the varied risk handling of many prominent enterprises on the stock price recovery. A more rapid reaction to risk occurrences means early processing time and less vulnerability to black swans.