Webinar Summary: Effect of Covid-19 on Stocks Markets
We hosted our 1st webinar on the topic ‘Understating Covid-19 from Charts & Its impact on Stock Markets’. Our speaker for the webinar was ‘Prashant Jain’ a banking professional with more than 5 years of experience in the Banking industry.
The speaker started the session by giving basic explaination on stock markets
- Business funding
- Debt v/s equity
- Share listing
- National stock exchange
- Factors which affects the stock market
One of the key objectives of the webinar was to make our crowd acquainted with various charts around Covid-19 and to discuss different perspectives around increasing the number of coronavirus cases in India. The speaker explained various charts Covid-19, like an exponential curve on total number of cases, a graph on the number of days it took to add 2000. The charts explained that the cases in India are expanding, but at the diminishing rate.
The webinar further advanced with the conversation on the factors affected Stock Market post Covid-19 and sector-wise impact.
| Sector | Companies E.g. | Some Impact Areas |
|---|---|---|
| Banking | HDFC, ICICI | No or less credit demand, Fund Liquidity |
| FMCG | HUL, Marico | Less Production, Low demand, Local store closed |
| IT | TCS, Infosys | Low Demand Demand |
| Pharma | Sun Pharma, Cipla | US FDA Approvals, Demand of APIs in USA |
| Automobile | Maruti, Bajaj | Manufacturing facilities shut, |
We know that every now or then, financial markets present an opportunity to hit the reset button. Covid-19 is one such opportunity to reset our personal portfolio. The recent crash in Nifty, 40% decline to 7500, has reminded us of a very important lesson ~ ‘Never put all eggs in one basket’. Sector wise analysis shows that defensive sectors like FMCG are likely to outperform and Banking and Auto sectors are likely to under-perform in short term.
Initial government response, nearly INR 1.7 trillion, was targeted to the bottom of pyramid. Government is banking upon direct benefit transfers and food subsidy. On other hands, economic package is still work in progress. Reserve Bank of India has reduced interest rates to 4.4% and launched targeted long-term operations.
