June 14, 2020

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Virus Fears Indian Stock Market Fall and Recovery Rate from 1994 to 2020

Due to the sudden outbreak of coronavirus in China which has become a big disease for the entire world. More than 200 countries are affected by the entire world. European countries and the USA affected most Due to Covid 19. weighing on equity markets globally as investors are shifting their wealth from riskier equities to safe-haven assets, fearing that the virus outbreak may derail the pace of economic growth.

We have the statistics to look at shared by Ace Equity from 1994 to 2000. It shows how the Indian Stock Market falls when virus fear came to India and when it passed how Indian Stock Market recovers rate. We have witnessed that every fall comes with a high recovery rate. It was 1994 and 2010 where the recovery rate was negative in six months’ time while in 2003, 2009, and 2014 the market recover rate was the highest.

After the analysis of the above numbers, we can say that we might have a good time coming up. Let’s talk about the Corona Virus pandemic (Covid-19) how the market will react fro here in the next six months. Indian Government started lockdown and it will not able to stop Corona Virus spreading. Most of the cities of India infected with this pandemic and the things are not in control. Big companies are working from home while few of already shut down the manufacturing. So the big worry if the companies are not going to post good results and the world market will not support the things will not settle down. As per the current scenario, we might have negative returns in the Sensex in the coming six months. Still, there are few companies that might give you the handsome like Fertilizer stocks but still, the overall market should perform to have a go.

Source: moneycontrol.com
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