Coronavirus has affected the global economy Market badly. Furthermore, many companies and investors are facing a severe cash crunch in the market. Read ahead to know more.
Impact On Some Companies and Investors
Coronavirus has caused a $10 million loss for Agilent company in its first quarter of the fiscal year. Furthermore, Alibaba, the Chinese giant has warned customers that delivery delays will be frequent amidst the virus outbreak.
The manufacturing of Apple products has slowed down Apple’s selling machinery. Furthermore, the company has warned investors to avoid investing in Research and Development sector at the moment.
Moreover, the majority of airline companies will go bankrupt looking at the current travel frequency. Almost all countries have subjugated abroad and domestic traveling. As a result, airline companies are going in loss and investors are not getting any fair returns.
German Automobile giants, BMW, and Mercedez Benz have lost their market in China due to coronavirus outbreak. Expected sales have dropped massively. Moreover, both the companies are drafting a new business model to overcome this loss by the end of this fiscal year.
Impact On Asain Stock Market
China and India are considered two major Asain Equity markets. Moreover, China is the manufacturing hub with many global companies having its production house in China. The Chinese stock market has fallen as the production comes to a halt due to coronavirus.
However, the Chinese Government says that they have started to run their economic machinery again. As a result, China will emerge as the strongest in terms of financial market recovery.
On the other hand, in India, both Sensex and Nifty plunged to a 3-year low breaking level. Furthermore, the BSE Sensex broke below 30,000 and Nifty50 breached 9000 levels. Income rate will get affected since the entire world is on lockdown.
What Should Investors Do
Investors should discontinue systematically and SIP investment plans. Furthermore, they should shift their money from debt portfolio to equities. Also, investors should not change their stock goals and their approach towards it at the moment.