Stock market depends on the sentiments of people, it interdependent to other countries trade.
Those who don’t know clearly about stock market clearly, here is a simple introduction to those people-
Stock markets
works on the principle on demand and supply, if for a particular share demand
is more than the supply, the price of that share increases or vice versa, this
can be calculated by the software through BSE and NSE. These are the two
markets Nifty and Sensex, that where people sell or buy shares.
For the
first wave of corona in INDIA,
Due to
CORONA, the sentiments of people change, LOCKDOWN was imposed all over INDIA on
23rd of March, 2020. This was imposed for more than 3 months in all over
INDIA by Prime Minister, Shri Narendra Modi. All the factories are shut down, labors
move to their villages. Demand of raw materials, finished goods decreased in
markets.
This is one
of the massive negative effect on Indian Stock Market, investors are unable to
understand about this unpredictable pandemic. Almost every investor got huge losses
to this pandemic. This is the data that shows number of times the market decreases
more than 2.5%:
This can be
easily extract out from the graph that how COVID-19 impacted stock market. This
is not only the story of India but the whole world was impacted.
Companies tried
to overcome their losses, but this can’t be managing so easily, some contracts
are postponed by many firms. Work of import-export and logistics got huge
losses due to shutdown of all the factories in the world. But companies that
provide online facilities got a opportunity in the market but these are mainly
startups that were not impacted the share market of India too much.
After ending of lockdown, share market tried to come its better position, again factories were opened, labors came from their villages to cities and a sudden hike was seen in the market. Investors again stared investing in markets, banks were opened, market started opened, people bought products.
This is the
graph that better shows the impact after end of lockdowns in India. The one
more factor was the successful results of CORONA VACCINES by Indian
PHARMACEUTICAL companies that strengthen the Indian economy.
Second wave
of COVID-19 in INDIA,
Again, the
sudden hike can be seen in CORONA cases in INDIA, everyday more than 1 Lakh
cases are coming. Government and economists are against the lockdown, but there
is no other plan by Indian or state governments. State government implements small
lockdowns in nights or during weekends. The major corona cases can be seen in Mumbai
and Delhi, two important cities for trade. The main offices of BSE and NSE are
in Mumbai. People already predicted that lockdown will be imposed, due to which
again labors started moving to their villages, which cause a labor shortage in
factories, people move less to their places, buyers are less in markets,
demands are again decreases.
The reaction of market is mixed but it is more impacts on negative side, investors started investing more in Pharmaceutical companies as it is need to overcome COVID-19.
Let’s see how Budget and CORONA together impacts on Share Market
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