{"id":320,"date":"2020-03-02T09:51:38","date_gmt":"2020-03-02T09:51:38","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=320"},"modified":"2020-03-02T09:55:50","modified_gmt":"2020-03-02T09:55:50","slug":"coronavirus-impact-on-indian-stock-market","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/coronavirus-impact-on-indian-stock-market\/","title":{"rendered":"Coronavirus Impact on Indian Stock Market"},"content":{"rendered":"
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Coronavirus\nhas a contusing effect on China which hasn\u2019t fully come out of the trade war\nwith the United States and now the coronavirus has left its economy expanding\nat the slowest pace in the last three decades. Thousands have been killed and\nthousands more are severely infected from coronavirus which putting the brakes\non China\u2019s economy. India also reported the first confirmed case of coronavirus\ninfection on 30 January 2020 in the state of Kerala. The one who found affected\nhad travel history from Wuhan, China. In addition to it, there were two more\ncases coronavirus cases confirmed \u2013 one from Telangana and second from Delhi. <\/p>\n\n\n\n

However,\nprior to that, there were many multiple suspected cases reported in cities such\nas New Delhi, Bangalore, Mumbai, Patna, and Hyderabad. The NSE Nifty as\ndeclined 10 per cent since Jan. 20 while other major indices of the Wall Street\nand European market has seen a significant decline in times of coronavirus. Up\nuntil now, the Indian market looked like the only \u2018Safe Heaven\u2019 among other Asian\nindices but with the two more cases, the Indian stock market may not escape unscathed.<\/p>\n\n\n\n

The\nepidemic led to a slowdown in China which have a ripple effect across the\nglobe, and to some extend \u2013 Indian stock market. India and China have a trade relation\nwith annual trade of ~$90 billion \u2013 wherein Indian imports goods worth $75\nbillion and exports goods worth $15 billion. With the supply disruption, the\nsupply shortages affecting Indian market and impacting companies of India who\nhad to suffer from low levels of inventory. Apart from this, the pharma\ncompanies heavily rely on APIs (active pharmaceutical ingredients) imported\nfrom regions of China that are mostly affected by the coronavirus outbreak.\nThis will lead to a temporary contraction in imports till the time some\nnormalcy is not restored in China. <\/p>\n\n\n\n

If\nthat continues even for a couple of months, then consumers may witness prices\ninch higher that would ultimately, drive the inflation. This, in turn, makes it\ndifficult for the monetary policy commissions (MPC) to provide a further boost\nin monetary policy. <\/p>\n\n\n\n

The\ncurrent situation depicts that the imports are likely to contract more than the\nexports which could be the opportunity for India as China is the biggest\nexporter to India, followed by the US and UAE. This could be a time for India\nto fill in the gap and find ways to reduce its dependency on Chinese imports\nsuch as computer hardware & peripherals, industrial machinery for dairy,\nelectronic components, telecom instruments, and organic chemicals. <\/p>\n\n\n\n

Also,\nthere is good news that coronavirus does not survive in extreme temperatures\nthat make it beneficial for emerging markets like India as winter is drawing to\na close and summer sets in. Soon, we will see the market surging and economic\nactivity picking up the pace from next quarter on. Still, the country\u2019s lower\nrate of coronavirus infection cases are seen as a positive factor for the stock\nmarket and the country\u2019s market may soon become more attractive to foreign\ninvestments. <\/p>\n

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Coronavirus has a contusing effect on China which hasn\u2019t fully come out of the trade war with the United States and now the coronavirus has […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":321,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,48,10],"tags":[58],"class_list":["post-320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-economy","category-featured","tag-coronavirus-impact-on-stock-market"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=320"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/320\/revisions"}],"predecessor-version":[{"id":322,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/320\/revisions\/322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/321"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}