A walk down memory lane, India just lost their second wicket as Sachin walks back after 6.1 overs. online stock market This moment from the 2011 World Cup final has been etched in our memories. With the two important pillars gone lets hypothetically imagine someone decides to call it quits and shuts the TV off. What new levels to your anxiety would you discover? Similar is the anxiety-driven plight of an investor on hearing the news of market closure in tough times.
Should Stock Markets Close Over Coronavirus Pandemic? online stock market
The stock markets, however, face stakes a million times higher. online stock market. Ever since the Sensex summited at 41945.37 points on 17th January, it has fallen a total of 34.22%. The Sensex broke the max single-day fall a number of times, losing over 13% in a day ( on March 23rd) and ended at 27590.95 points as of 3rd April.
One of the major reasons for the call towards the closure of markets has been to reduce the. The volatility of markets and panic online stock market selling. Closure of the markets will give investors a few days to catch their breath and reevaluate their positions instead of blindly following the market sentiments due to the COVID-19 pandemic.
Why closure is required in the Current Scenario?
In the wake of the COVID-19 pandemic, social distancing has become a necessity. online stock market This would prove challenging for stock market employees and the employees of dependant services to risk their lives by venturing out to work. This may further escalate to the market being crippled if they are infected.
One of the major reasons against the closure of markets is that a market closure will further erode all investor confidence in a particular country. This will be caused due to the lack of transparency and data available to investors during the closure. In a time of crisis where investors are already panicking, a closure will only intensify their anxiety. This will increase the possibility of them selling out of the markets.