The emergence of the COVID-19 pandemic, a new and novel risk factors , leads to the stock price crash due to a rapid and synchronous sell-off by the investors . However, within a short period, the quality sectors start recovering from the bottom. A model of the stock price movement has been developed to explain such phenomena based on the Institutional fund flow and financial antifragility , which represents the financial indicator of a company. The assumes that during the crash, the stock does not depend on the financial antifragility of a company . We study the effects of shock lengths and antifragility parameter on the stock price during the crises period using the  synthetic and real fund flow data. We observed that the possibility of recovery of a quality stock decreases with an increase in shock-length beyond a specific period. On the other hand, a quality stock with higher antifragility shows V-shape recovery and outperform others. The shock lengths and recovery length of quality stock are almost equal that is seen in the Indian market. Financially stressed stocks, i.e., the stock with negative antifragility, showed L-shape recovery during the pandemic. The results show that the investors, in the uncertainty like COVID-19,  restructure their portfolio to de-risk the investment towards quality stocks . The study may help the investors to make the right investment decision during a crisis.
The emergence of the COVID-19 pandemic, a new and novel risk factor , leads to the stock price crash due to the investors' rapid and synchronous sell-off . However, within a short period, the quality sectors start recovering from the bottom. A stock price model has been developed during such crises based on the net-fund-flow (\Psi_t) due to institutional investors, and financial antifragility (\phi) of a company. We assume that during the crash, the stock price fall is independent of the \phi . We study the effects of shock lengths and \phi on the stock price during the crises period using the \Psi_t obtained from synthetic and real fund flow data. We observed that the possibility of recovery of stock with \phi>0, termed as quality stock, decreases with an increase in shock-length beyond a specific period. A quality stock with higher \phi shows V-shape recovery and outperform others. The shock length and recovery period of quality stock are almost equal that is seen in the Indian market. Financially stressed stocks, i.e., the stocks with \phi<0, show L-shape recovery during the pandemic. The stock data and model analysis shows that the investors, in the uncertainty like COVID-19, invest in the quality stocks to restructure their portfolio to reduce the risk . The study may help the investors to make the right investment decision during a crisis.
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factors
factor
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the investors'
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by the investors
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model of the stock price movement
stock price model
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to explain such phenomena
during such crises
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Institutional fund flow
net-fund-flow (\Psi_t) due to institutional investors,
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, which represents the financial indicator
(\phi)
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The assumes
We assume
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does not depend on the financial antifragility of a company
price fall is independent of the \phi
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antifragility parameter
\phi
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\Psi_t obtained from
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a quality stock
stock with \phi>0, termed as quality stock,
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On the other hand, a
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antifragility
\phi
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lengths and recovery length
length and recovery period
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stock with negative antifragility, showed
stocks with \phi<0, show
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results show
stock data and model analysis shows
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invest in the quality stocks to
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de-risk the investment towards quality stocks
reduce the risk