Monthly Archives: March 2020

Markets went into freeze in the morning by falling 10%, later on markets recovered with a smart recovery Nifty rising by 365 points reaching 9955 and the sensex ended up by 1325 points reaching 34103. The Carona virus, the main culprit for the market fall in the past week, and Yes Bank problem, Petrol pricing warfare bought down the markets. An extreme incident made the markets fall down and an extreme fall made the markets go up. The recovery might be temporary, as the virus has no cure and the cases are increasing day by day all over the world. The Economy problem is not only related to India, it has spread all over the world. The virus has stopped all economic activity and wealth is not produced. With work being stopped wealth creation stops, so markets have crashed, and the recovery is robust for a temporary phase. The results of companies were average, and the incidents are difficult to face. Stocks are directly related to Economy, and a downward economic activity will lead to fall. So, a long term recovery is anybodys guess and the virus the main culprit is also anyones guess, our whole economic activity hangs in balance.

Markets had a historic fall today,sensex fell by 1941 points at 35634 and Nifty fell by 538 points at 10451.Yes Bank a stock in a scandal was up by 31% crude has gone down because of low demand. The world over demand has come down. The demand is for some stocks like service oriented like diagnostic labs, like Lal Path Labs. and chemical based industries like Pidilite. Otherwise metal stocks and many other stocks have come down. What happens is, the all round drop in capital market, will pill down prices of many stocks, even those stocks which are good will come down. Demand, is to be created, but how demand is created? Automobiles and real estate are the main drivers of the economy, they are down because they were saturated. The best thing for markets to go up is, maybe small industries have to be catered in a particular area. Overproduction is not to be there, goods can be manufactured according to the requirement. Now, with overproduction in automobiles and saturation in real estate, stocks are down.

Markets were down today,nifty closed down at 52 points at 11251, and the sensex by 214 points at 38409, the markets reecovered a bit at the end. The Foreign investors are selling and with the carona virus spreading to India, a lot of nervousness is created in the Capital markets. The results of companies are average and not very good, combined with the outbreak of the virus and the world economy in a tailspin, markets were down. Some also warn, the markets are oversold, and not to go short ie expecting furthur cooling of prices.Some say, the world economy is down and it takes time to recover. With the times we are living now, markets seem to be down and it is better to take care. Stick to those stocks you are familiar with it is a safe bet.