We have never had a worldwide recession or market meltdown triggered by a public health crisis in modern history.
Recent recessions triggered by pandemic
But now, we are facing financial weakness by a pandemic.
The meltdown has been savage, globally. This is the worst crash within the shortest time. In 2008, the crash was worse. In India, Nifty crashed 65 to stand proud of the peak; but that was cover several months. This time a 30 per cent crash happened within a couple of days.
In the India, NIFTY crashed 30 per cent in last few weeks
The crucial factors most are looking forward to is: When will the new cases peak?
Once new cases peak within the US and Europe, stability will return.
This numerous increasing no. of cases will dictate the financial & economic matters
The World Economy is predicting recession, which may lead to many circumstances, the Global economy will is moving towards recession in 2020
Almost certainly, we are in recession now. There are a couple of who fear that this will even cause a depression. Initial estimates suggest the worldwide economy will contract 1 per cent this year. Q2 contraction would be savage. Last time the worldwide economy contracted was in 2008-09. Even in 2008, when the market crash was worse, the important economy was working. But now, the important economy has come to a grinding halt thanks to the entire shutdown in most parts of the planet . Recovery? Yes. When? Difficult to predict Another possible prediction is that this epidemic also will come to an end and therefore the global economy will recover. But when the epidemic will end and when will the worldwide economy start to recover is difficult to predict, perhaps in two months, perhaps in two quarters. The recovery within the markets is probably going to be swift and sharp. Our markets are dancing to the tune of the mother market, Wall Street. But it’s important to understand the very fact that things is far better in India in terms of the virus impact. A very recent research report said heat can hamper the spread of the virus. So it’s possible that India could also be less impacted. Stay calm True, these are unnerving times. In panic situations like this, it’s important to remain calm. The market is down by around one-third already. Values that we see within the market are reflections of fear, panic and total confusion. So stay calm. Big Players focus on big company to sustain their management in financial matters
FMCG, pharma and IT and really selective financials look attractive within the present context.