Navigating Geo-political Turbulences: The Resilience of NSE ESG Index – An Event Study

Abstract

The Efficient Market according to the hypothesis, the stock market can be greatly impacted by geopolitical crises. This research attempts to look into the effects of geopolitical tensions, specifically focusing on the Russia-Ukraine War, the Israel-Hamas conflict, and the Red Sea crisis to evaluate the resilience of the NSE ESG Index. The research has been undertaken using, paired sample t-test to examine whether geopolitical tensions had any discernible impact on the NSE ESG. In the majority of cases analysed, geopolitical tensions failed to significantly influence the NSE ESG Index, highlighting its stability and superiority of NSE ESG in the face of external geopolitical factors.