It is difficult to predict how the Stock Market will work today, tomorrow. When there is a panic of Coronavirus, investors think with their minds to make their decisions emotionally, rather than logically.
SENSEX is decreased up to 2000 points on the 9th of March, More than 7 lakh Crore rupees is lost by the investors in a single trading session. Another big crisis in the Indian Market after the Lehman Brothers crisis ( OCT 24 2008)Will the Market fall more? Now which Stocks or Which department is to avoid now to invest.
Today’s Coronavirus update in India is 46,711 confirmed cases and 1583 deaths ( according to the data of 5th May – World Health Organisation). And it is increasing day by day, with its own pace no one knows perfectly when everything will sort out and coronavirus will be removed properly. In this situation of lockdowns, no one is working, and the availability of money in the market is decreases, main sectors like sport’s industry ( Olympics is canceled), travel and tourism industry, Film industry, tech industry ( manufacturing industries ), restaurant industries, falls remarkably, not only in India, IMF has now declared that the Global Economy is now in recession. This recession in 2020 is predicted to be worse than the 2008 financial crisis.
Jobs are gone from the simple peoples because to take care of the company to make survive the company two things can be done which is going on,
- Tesla cuts salaries to 10% of its employees.
- Marriott, the world’s largest hotel company cut its CEO’s salaries to 50% and temporarily fire about 10000 employees.
- Norwegian Airlines lay off its 90% employees.
- Bajaj Auto, India’s third-biggest two-wheeler manufacturer, has asked its factory employees to take a 10 percent pay cut.
- Curefit layoffs nearly 1000, Treebo hotels (30%), FabHotels (30%), Meesho (30%) and the list is so long …
- All the small businesses are affected so much.
- Daily wage earners are very much affected by all these.
International Labour Organisation predicts 38% of the world’s workers are at risk of a layoff or pay cuts. ( maybe 1. billion workers in the world ).
When WHO is about to declare COVID-19 a pandemic, the financial markets, as well as other categories like real estate, commodities, crude oil, it is the rare, completely unexpected, Black Swan event, which has a great impact may be deeper and longer than what was estimated a few weeks ago. India, declare economic shutdowns and travel restrictions, the worst may still be in the future. The short-term disruptions are likely to be severe.
All these are made a negative impact on the Indian stock market as well as the worlds.
## NOW what, to invest or withdraw? Is the market go more down? :
No, one can hardly predict that market will go more down or not? It totally depends on the COVID-19 vaccine or permanent cure. And as the share prices are too low that makes the investors a reasonable and positive option to buy. In the share market, it is common to face this kind of issue of a stock market crash so not investing is not the point here. So the bottom line is that it is the right time to invest.
## If it is a good time or opportunity to invest, then which sectors to avoid and which to lookup? :
Pharma industry: Is after this coronavirus or after 5,10 years people want to consume more medicines, I think no. Yes for some reason like it may now have more flexibility to launch new medicines in the US because the FDA may be lenient to Indian companies. But it is not that much-hyped to invest more in these companies, you have to check some of them and choose after seeing their sustainability records.
IT Stocks: The IT companies which are product based are affected by this, in India, 80% of IT companies are service-based companies, So you have to monitor carefully the sectors, which these IT company is providing the service you have to be choosy.
Digital Entertainment/Media Sector: The Digital service providers like the entertainment ones the digital classrooms, gaming platforms, this should a good sector to invest for the future.
# And you have to avoid, for this situation like Aviation, Hotel Tourism, Real Estate sectors the companies which depend on the multi gatherings are likely to be avoided for the short term. But, the companies who have the courage to revive after this situation, must be the leader in these sectors, the competition will decrease but choose the stocks wisely before invest. These sectors are not bad in the long run for sure.
## And now from where to invest in these stocks, mutual funds:
After research and using some apps I came into some conclusions
There are brokers by which you can invest or you may invest directly in mutual funds with some apps like Groww app, Upstox, I used both and both are good with their flexibilities.
# Groww app: It is a start-up based in Bangalore.
There are other apps also which provide you with the same services but I like Groww app that’s why I suggested (*No Paid Promotion)
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