11/04/2020 By Kanishk Raval
There is a saying in the stock market which all the leading investors abide to if you want to invest in long term in stock market “Be greedy when others are fearful and be fearful when others are greedy” this applies in the stock market and real life as well. As businesses are going into a temporary lockdown means big players are not being able to invest as much in stock market as the cash flow has reduced due as only, essential services are being making huge amounts of revenue we can see this in the stocks of shares of companies like DMart between mid-February which showed a huge reduction in its equity value as market was scared during the Covid-19 pandemic we can see the share value of Dmart going down by quite a margin but as the lock-down was announced and we can clearly see them going up as people are stocking up.
Similar increase can be seen in the pharmaceutical sector after the announcement of Hydroxychloroquine being given a green flag by government of India to be exported to global market a drug which was previously banned for export for keeping a supply for its own citizens in India. Cipla stocks nearly doubled in a single day after the announcement and so was a jump in the stocks of all the companies involved in the production of the anti-malarial drug hydroxychloroquine. Keeping an eye out for such news can really help also some companies like IPCA labs whose stocks hit their highest during this time following the import ban being lifted on the company by US FDA.
Certainly the stock market is a risky place where the money can be lost any time as quickly as it is gained. Especially in the light of current scenario of covid-19 and its ever changing nature nothing can be guaranteed but if you tread with caution there is a fortune that can be made. In every investors there are such times when the markets have such changing moments and the Investors that take benefit of such times are ones who take their surf over such high tides are the ones who make gains also caution needs to be exercised as such high times it can never be predicted when the market can hit the rock-bottom. But as Gold Man Sachs said there can be a that there can be a silver lining to this situation as it was seen in the earlier recessions we can say the market can see a similar rebound once we are coming out of this time of crisis and there can be a huge number of new job being created and the markets would see a similar rebound effect.