Nifty has fall more than 7% in just one week and almost 3.71% in one day. This is the biggest fall after 2009. Coronavisus has made global economy shivering with the fear of recession. No one is sure about the coming days are opportunity to buy or sell.
Market started with the gape up opening of 3% as the global markets were down. Most of the nifty stocks were down more than 5%. People who have not seen market going down in 2009, they have witnessed the market crashed today at 28 Feb 2020. It was the biggest fall in stock market which made people cry over uncontrolled drop in share prices.
Investor are exiting from the market with fear that market can fall more in near time. This has been seen always that such virus impacted the market in terms of sharp correction but this correction is not long. This is the time to buy the quality stock on low valuation. Such biggest fall in stock market with deep correction comes rarely.
This is not just the Coronavirus which is behind this Market fall, global slowdown, reduced credit growth and liquidity crisis etc are also in the scaring the investors.
Coronavirus might also help India to become fastest growing economy again. There are some major benefits which India can get if this opportunity grabbed.
Major benefits that India can avail
Become reliable destination of global liquidity flow
Whenever such recession situation arises developed countries like America increase the liquidity in the economy so that economy could again stand on its feet. If India can avail such opportunity to get this liquidity from developed countries and register it self as the biggest global exporter of goods and electronics. This will complete the liquidity crunch in India.
As the China is majorly affected by coronavirus and its manufacturing has impacted. It is a chance for India to get more client and contracts.
Reducing trade deficits with China
China is our biggest trade partner. Our trade with China is almost $70 Billion dollar but we do not earn from it because we do not export more. This is the time to make our manufacturing industry strong and reduce importing toy, electronics, chemical and other goods to become independent.
This will definitely benefit India to get the balanced trade with China.
Become reliable destination for multinational companies
Multinational companies help in job creation. India have always been providing cheep labor. When most of the countries are affected with Coronavirus, India needs to safeguard itself from such viruses and provide reliable and skilled manpower.
There is lot more for India to gain from this opportunity with effective compliance and policies.