The way markets crashed on Friday, with the Nifty hitting the 10 per cent reduce circuit is a international market place -led panic. The rout was brought on by the market-off in the international markets, initiated by a 10 per cent crash in Dow Jones Industrial Normal, followed by the Korean markets freezing in the reduce circuit.
The full panic has been initiated by fears that the process to curtail the Coronavirus (COVID-19), across the globe, is misplaced. Fact be advised, we do not know when will this chaos will simplicity. Around a hundred,000 people across the globe have been infected by the virus and just about 5,000 have died. India, far too, is looking at a reliable increase in the range of scenarios. Nevertheless, this does not indicate that we cannot regulate the outbreak. We need to have to put in stringent restrictions, perhaps a lockdown, to curtail the spread.
Nevertheless, buyers must realise that this is a pretty short-phrase period, and normalcy really should appear back to markets soon. Ideal now, buyers really should be inactive and really should avoid any type of shopping for or promoting. For extensive-phrase investing, it is a specific time to hold out and observe and start out accumulating good quality stocks through the systematic investment decision strategy (SIP) route.
Vinod Nair is Head of Research at Geojit Money Companies. Views are his have.
(As advised to Nikita Vashisht)