Many of the new entrants into the stock market would be puzzling with a question like is this the right time to invest in the Indian stock markets because they are completely down due to coronavirus effect all around the world. To be true no brokerage firm or investment advisors advised people to sell the stocks and exit before the Pandemic has blown out.
Now as the markets are completely struggling with the corona outbreak. Even IMF has recently announced that officially world is in recession. The statistics of the Indian stock markets show us how drastically the share market has collapsed after seeing new heights in 2020. On 16 January 2020 sensex hit all time high 42,059 and ironically on April 3, 2020 sensex closed at 27,590 points. See the huge difference, no one has predicted this and alerted the small investors. You can see the graph that clearly shows it is like diving into a sea, and do you think anyone survived that ?
A new investment in this kind of market would look profitable but now the future of the stock markets is completely dependent on the news about the coronavirus spread across the world. The positive signs like, coronavirus vaccine is successfully tested, the COVID-19 medicine is found, the deaths and positive cases around the world are coming down drastically kind of news will give a much required stimulus to the stock markets around the world, not just India.
With our expertise we cautiously advise you this, if you are small investor or a medium investor, first select a stock that is doing reasonably good business even in this coronavirus crisis time. Check for any positive news in the media about the pandemic and if there are any invest partial amount. Do not panic and wait for your target price or hold till things get better.
These kind of markets have potential for the long term investors, the blue chip stocks which one couldn’t afford due to their higher price are now handy and right time to buy them for your future plans.