The above thoughts must be crossing every investor’s or trader’s mind immediately learn stock market. The stocks which were expensive in January 2020 are immediately available at a reduction rate of 30%-50% in May 2020. So what led to the present sudden decline in prices or undervaluation or availability at a sale? Is it just an impression of worldwide pandemic (COVID-19), or Is it the worldwide uncertainties.
Are we heading towards a much bigger recession?
Or Were these share prices just too overvalued and had just the proper trigger to correct them, which during this case was COVID- 19.
To get a touch deeper into the discussion, let’s take an example of a couple of sectors. The auto sector, the health of which usually defines the ‘luxury health’ of a nation. But to learn stock market over a while we’ve seen endless decline within the Nifty Auto Index, which tells us tons about the depleting health of the world .
The Auto index which was trading near all-time highs of 11900 in January 2018 is true now trading near lows of 5000 learn stock market . As we will see that this decline within the sector started long before COVID-19 was born. This also tells us tons about the consumer’s reluctance to spend less on luxury items and save more for future uncertainties.
Within the current scenario, most of the Auto sectors company shares are trading at almost half the worth compared to early 2019 levels. The image below is that the Auto Index for the last three years.
Similarly, if we were to require the instance of the Nifty Pharma index. This index was at peak during March 2015 (13,300 levels) and at its low during March 2020 (6700 levels). The figure below shows the Nifty Pharma Index Now learn stock market. During this case. One can say that this could be the proper time to start out investing during this sector because the pharma products. We Will have higher demand during. This global pandemic and that we can already start seeing pharma companies doing overflow last two months.
The index has almost recovered to 9000 levels learn stock market . So one can start building their portfolio have some portion dedicated to the pharma sector. Again SIP is that the best strategy.