It is a virus that mainly causes infection in living beings, mainly mammals and birds. The virus causes the common cold, fever mainly infecting the respiratory part. There are different symptoms for other species like cows and buffalos and pigs. It causes diarrhea, whereas, in chickens, it causes respiratory problems majorly in the upper respiratory part. The work is still ongoing to develop the vaccines and antidote for this virus. This is often pronounced as covid-19.
Coronavirus belongs to the family of orthocoronavirinade. These are enveloped viruses with a single-stranded RNA genome and have helical symmetry. This virus was first discovered in the 1960s, which was found in an infected chicken and in two humans suffering from a common cold, which were named as human coronavirus 229E and human coronavirus 0C43. There are several other members as well as constitute the virus family-like SARS-CoV, HCoV NL63, and many more.
The transmission of the virus often occurs from human to human. For example, if someone is coughing so, the droplets are coming out, which will enter your system and infect you. Likewise, touching your ear, mouth without washing them is also one of the main causes of the transmission of the virus.
Effect of the virus in the Indian stock market
According to the figures released by the National Statistics Office, the Indian economy has a growth of 4.7 percent on an annual basis. The previous quarter shows that the growth will grab the rate of 5.1 percent, which gave the optimism to auto-dealers. These stats were before the outbreak of coronavirus because of this severe outbreak forecasters are revising their calculations, which clearly shows the downfall of the market. The statement says that global trade and trade are degrading, and there are some production and manufacturing chains based in China that will affect the supply to India; thus, our market will get affected.
Indians electronics and white goods productions are dependent on Chinese supplies, and in the current scenario, the prices of electronic gadgets such as TV sets, ACs, microwave ovens, refrigerators, and many more product prices will be increasing up by 6 to 10 percent. The report says that other commodities like metals, oil-producing companies will suffer from lower global demand as well.
The positive side-
If we look the other way around, then this virus can be a blessing in disguise for the stock market. As coronavirus is spreading, Indian stocks are offering shelter to global funds in Asia, and notably, the Indian stock market is the only one to show the positive response for inflows of money for the whole year. Indian stock market is attracting foreign investment as India is the only country that is not hit hard by this virus yet. Multiple firms are flagging the qualities of India's local or domestic-focused market and showing the signs of economic recovery. According to the recent events, it is clear that there are more than 80k people that have been infected from the coronavirus and out of which around 3k have died already, whereas India has only three confirmed infection cases of coronavirus.
So far, India has been disconnected from the country’s affected by a coronavirus. The market shares are safe. India is Asia's third-biggest economy, and that is insulated from the outer problems because the market is majorly driven by local demands. The external performance is improved because of the overseas investors who have invested around 4 billion dollars in Indian stocks in 2020, that is the current year. It has been said that the money that was supposed to go outside to other places is coming to India because of the deadly outbreak of this virus, and it is expected that the trend will -continue for a while. It has been seen that the growth in the bank has been increased by 1-2 percent in the current period. If the growth continues like this, then it is intended towards the potential recovery for the losses which have been made in the past several years.
Effect on nifty and Sensex-
Nifty realty and nifty IT are facing significant losses that shredded more than 1% each. The BSE flagship is down by 143points to 39745, and the NSE barometer is down by 45 to 11633 points. The measure of volatility fell in the market by 3.65 percent to 18 percent on the day of expiry.
Some circumspection additionally sneaked in market members after financial specialists at State Bank of India said the Gross Domestic Product (GDP) development would probably remain level at 4.5 percent in the October-December 2019. It is being said that India faces the danger of getting affected by the coronavirus due to its high dependence on Chinese imports for different products.
Foreign investors are withdrawing shares worth 3337 crore, which constitutes to their total sales of about 6900 crores in Indian rupees. Managers say that money outflow will continue if the scenario is like this. Asian offer markets broadened misfortunes on Thursday as the fast worldwide spread of the coronavirus kept financial specialists nervous and looking for security in gold and securities. US wellbeing specialists have cautioned; therefore, they had just cleaned more than $3.6 trillion from worldwide securities exchanges.
MSCI's broadest file of Asia-Pacific offers outside Japan fell 0.5 percent and is down more than 4 percent for the week. Australia's S&P/ASX 200 dropped 1 percent by noon and has lost 7 percent this week. Japan's Nikkei fell 1.7 percent to its least since October. The Hang Seng fell 1 percent. Gold climbed 0.7 percent.
Now, in India, the spread of the virus is increasing, which is not good for the market. Among all these, HCL technologies faced a huge loss of 1.83 percent to 573 in India rupees, whereas TCS faced the shedding of 1.34 percent to rs 2094. There are some bank organizations as well who have faced losses.
some of the basic protective measures for the COVID-19 must be followed for the healthy future of an individual.
Indian stock market is on the stable ground because India is being disconnected from the countries suffering from the virus, so it is a good time for the investment, but everything has negative and positive side so studying the market before investing is always a good choice as a precaution is better than cure.