The most damaging week this week for stock markets around the world

Volatility will continue until the situation becomes normal at the local and global levels

Stock markets around the world are estimated at $ 3 trillion in the past week while Mumbai stock market is estimated at Rs. Erosion of over 1 lakh crore

This week has proved to be the most damaging week in the history of the Indian stock market. Stock markets around the world have collapsed in the past week after fears of a global recession triggered by the outbreak of the Corona virus in more than 3 countries around the world, with other adverse reports including corona viruses overturning recent reports. Was found. On the same day, the last day of the week, on Friday, twelve years after the recession circuit came into effect, on this day, there was a historical upheaval of 5 points in the Sensex and 5 points in the Nifty. Thus, in the past week due to various adverse factors, investors have invested Rs. More than 1 lakh crore erosion occurred.

On the last day of the week following the historic upheaval, the stock market rose. But doubts remain as to whether the market will continue to improve in the coming years. Thus, the technical picture of the Indian stock market is becoming blurred due to various adversities. The Nifty-1 Index fell to 5-day relative strength indicators, which is the lowest in major markets in the world in terms of market capitalization. In the case of ego trading, if the eigenvalue is below 2, significant support is lost if it breaks down.

The Nifty-1 Index has traded below these indicators at a significant level in only 2 trading sessions out of a total of 5 in the last 3 years. The world's leading indices like Dow, Futsi-1, Dax-1 and Nikki-3 are currently in neutral mode, with indicators in the range of 1 to 3. India's benchmark index has dropped sharply by about 5 percent from the recent high.

Similarly, moving average conversion or diversion is also showing a negative trend. These technical indicators are based on a 6-week exponential moving average and a 6-week average.

The stock market will still be under pressure from the Yes Bank and Corona crisis, experts said, adding that they have moved away from the market due to heavy volatility and panic among investors. Until further clarification on the Corona virus and Yes Bank is possible, the equity market is likely to remain operational. Thus, the market is likely to be under pressure and volatile unless normal conditions are restored.

Corona has taken stock of the stock markets. The past week has been a nightmare for investors. After the calendar year, the markets saw such a wave of recession, after a sharp decline in the short term, the markets are currently in an oversold position and due to this there is the possibility of a revival.

In the future, if the Nifty manages to close at the level of 1, then it may be seen at the level of 1,9,3,3,3. On the other hand, there is a strong support zone of 5-7,3. A closer look at the well-nourished effects of the corona virus can have serious implications on global manufacturing activity, which will have an adverse effect on the supply chain.

For the first time since globalization, such a phenomenon has come to the fore and poses a great challenge to the whole world. Regrettably, it has been a month and a half since Corona's outbreak came out but no standard treatment has yet been identified for her diagnosis.

Of course, the coronary 'mortality rate' is lower than other virus outbreaks seen in the last two decades, which is not as fatal as 5% of infected patients died during SARS. While the ratio is different this time around, it is around 5%. Thus, given the prevailing various adversities, there will be a market volatility in the coming days. Under these circumstances, it would be beneficial for investors to exercise caution.

Foreign investors jump in Corona flutter as well ...

Foreign investors' lion's share in Indian stock market boom

With the outbreak of the Corona virus outbreak hitting the global economy, foreign investors are turning to the dollar to withdraw their investments in emerging markets. The Indian stock market has also not been excluded from this exercise by foreign investors. According to the available data, foreign investors have raised Rs. Withdraw more than Rs. While more than a billion dollars is said to have been withdrawn from the Asian and European markets.

The corona virus has affected the flow of foreign funds based in Japan, Germany, South Korea and China into the Indian stock market. Due to the corona, the day-to-day operations of these countries' funds have been lost. In addition, the travel ban has also hit operations.

Money managers are currently avoiding investment decisions and are waiting for the virus to take control. Korea, Japan, Germany and China - these four countries together hold about 3,000 funds, which accounts for 5 to 6 percent of foreign portfolio volume in India.

The decline in FPI activity is the main reason for the decline in Indian stocks. Total derivatives trading declined 5 percent in February, while the cash market saw a two percent decline in total volume. The Nifty has lost more than 5% since February 1. Most of the largest FPIs in India are the leading mutual funds of these countries and their trade depends on investment from various local funds. Japan and South Korea have seen the biggest declines in trading volumes, market-informed circles said after the government removed Mauritius tax benefits, some large funds have established part of their operations in South Korea because of a profitable tax treaty between South Korea and India.

Thus, the reasons behind the tightening of the Indian stock market are also attributed to the huge sell-off of foreign investors. It is difficult to estimate how long this adversity will last. In view of this, it can be said that in the coming time, foreign investors will be far from the Indian market!

A serious blow to the evergreen mall and restaurant

In addition to the series of steps taken by the government to control the outbreak of corona virus spread across the world, the governments of the country and cities across the country have also taken steps. As a result of this exercise, people are now avoiding going to crowded places. Because of this, malls and restaurants across the country, which were previously buzzing with customers, are now in full swing. Sales of malls and restaurants in the last two weeks have dropped by around 3-5% due to the spread of corona virus in India. People with epidemics refrain from shopping in the mall or eating out.

The adversity that has arisen will affect sales due to international delegation visits, board meetings, cancellation of social gatherings. People are not moving out of the house, so sales of restaurants have decreased by 3-5%. However this effect is likely to be temporary. Everything is expected to be back to normal as summer begins. Currently this effect is found not only in India but in all countries in all the brands.

According to sources in the industry, the addition of these adversities has had a more adverse effect on the business as the business is cold in March due to the children's exams.