Has the Indian Tourism Sector Recovered from the COVID-19 Shocks?

The Indian stock market recovered from the COVID-19 shocks as the NIFTY50 soared its peak on 09 November 2020. However, we evidence that the average return of the tourism sector was still lagging behind by approximately 33 percent. Using the event study methodology, we find that the post-event day period experienced more positive abnormal returns signifying the market inefficiency. The post-COVID period average returns are positive and the high-low differences are also the least during this period. Future research should examine the firm-specific variables to find which firm characteristics stimulates the abnormal returns during the pandemics