Tuesday, March 17, 2020

The corona effect on stock markets


Recently the stock markets around the globe are facing some serious downfalls. The situation arising appears to be similar to Bear Markets. The continuous downfalls brought Bombay stock exchange ( BSE sensex ) down by 10000 points in a week’s time, to the level of 32000 which is similar to the level achieved by the market in 2017. Same is with Nifty (NSE) currently trading on 9955 points.

Corona Virus effect on stock market
The Corona Effect

The reason behind this big downfall is the fear in the mind of investor which aroused due to corona virus (COVID19). The fear made people to sell their stock in bulk so that they can have their money in hand. People usually find cash in hand safer in compare to the risky volatile markets.
The investors need to understand and analyse the situations without emotions and fear of losing everything. If you have invested in the stocks of good companies then your shareholding can not remain undervalued for a longer period of time. It’s just a matter of time that the market will regain its actual position.

What should investors do?

Investors must held there nerves. This situation of heavy fall was expected by investing gurus 2 years back due to the pattern of bearish market in every 10-12 years of time span. This pattern came out in the form of corona virus.
Now the investors must re analyse the coming quarter results of the companies in which they have stock holdings. Also analyse the stocks which are undervalued in the market ecosystem. There is a high chance of correction for the good stocks which got undervalued just because of the market trend.

Recommended stocks:

I recommend the following stocks you should analyse:
Recommended Stocks
CMP
Expected price
Reason
Bank of India
Rs 36
Rs 70
Currently Undervalued. A big buying came on last Friday
Future consumer
Rs 13.10
Rs 25
Fundamentals shows the big rise may come.
D-marts direct competitor will change the strategies.
SBI
RS 242
Rs 300
Big giant appears to regain the market position.