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2020 Correction provide new opportunities for Equity markets

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Team StartupcitySince the outbreak of the pandemic in India the fear of the deadly virus has caused tension in the whole country. Disruption has been witnessed in the economic ecosystem of India after the government has announced shut down in many places restricting public gatherings including no business travels and others.

While the world is witnessing the impact of the epidemic on the economic ecosystem, India despite the fall of 20 per cent in its indices is seemingly doing well in its earning growth. This is, in fact, a good time for the investors to invest as the valuations of the markets are much lower and since many investors at the present are stepping back due to the fear of the pandemic it gives the big time investors a chance to come forward and grab the opportunities and invest on the stock markets.

The falling of international crude oil prices will have a good benefit on oil-importing countries like
India as the fiscal situation of India will be enhanced, that is $1 fall in crude prices covers India’s account shortage by $1.5 billion dollars.

It will also help the government to raise the Indian economy as it has not fully cut down the prices of the oil but has increased the tax to help to boost the economy and help customers meet their to end needs.

India has entered the bear market territory with more than 20 percent cut in benchmark indices, although it can be risky for the investors to invest right now however the situation can prove to be beneficial for the long term investors. Investors can choose big companies that have already corrected more than 20 percent besides these companies will also hold less risk.

The following shows how the stock markets are doing currently:
Sectoral indices are trading on a positive note with stocks in the metal sector, energy sector and auto sector witnessing most of the buying interest.
• The BSE Sensex is trading up 105 points (up 0.4), while the NSE Nifty is trading up by 35 points (0.3) percent.
• The BSE Mid Cap index and the BSE small-cap index are trading up by 0.7 percent and 0.1 per cent respectively.
• The Rupee is trading at Rs 74.01 against the US $.

The Indian markets are going through a period of fluctuation right now and it is a big opportunity for big-time investors to step ahead and make investments. The fear of the pandemic should not come in the way of the investors and they should continue with their investments.