covid-19 economy

covid-19 economy

Stay Calm And Avoid Panic Selling

In the last few weeks, things have not really been favourable for Indian investors. The stock markets have tanked miserably and globally there are clear signs of recession. There is a crisis of confidence in the markets and there is uncertainty all over. These are truly difficult and trying times. The entire world is in the throes of one of its most formidable challenges ever faced by mankind. The COVID-19 virus attack has taken the entire world unawares. The way out is still unknown. While hi-tech medical research is ongoing, it is still uncertain when we will be able to see the light at the other end of the tunnel. We have seen unprecedented developments in the stock markets in the last few weeks. The Sensex has dropped by 2000 points plus in a day more than once. It stands at around 29,000 now as against 38,000 last month. The story with the Nifty is similar. Investors have taken a heavy hit and no one is bold enough to venture into the unknown at this point of time. Making matters worse are predictions by international bodies that India’s GDP growth will plummet. Some, like Moody’s has predicted that GDP growth will be just 2.5 per cent for calendar year 2020, down from 5.3 per cent forecast earlier. That is not helping investor confidence. What is making things worse is the huge drop in crude prices which is affecting the global economy. With the US becoming one of the worst affected countries by the COVID-19 attack, the impact is being felt worldwide and India is not an exception. The times are going to be tough for the months to come even after the virus massacre recedes in India. The markets, though gaining in pockets, will take time to come back to their earlier glory primarily because the Indian industry has been hit badly. Manufacturing and productivity has been severely affected. The state of company results in the next quarter is anybody’s guess. In such times it does not pay to do any panic selling and will make sense to stay invested for the long term because the markets may show some resilience after a few months and bring in some cheer for the investors. World over, the media is going through a tough time. Conditions are such that it is increasingly becoming difficult for us to continue with our normal schedules. It is often said that desperate times require desperate measures and we are truly going through desperate times at present. Obviously, at our end too, it will call for drastic measures. We will do our best to ensure that our readers stay safe and ensure that we do not compromise your safety and security in such times. The PM has put the entire nation in a three-week lockdown in which nothing but essential services will work. That puts us in a difficult position to carry on with normal working schedules as printing and distribution of the magazine will not be possible. Moreover, we would not want to send magazines to our readers at this point of time as the print copies go through many hands before reaching our readers and may inadvertently become carriers. As such, we have decided to temporarily suspend the print edition of Outlook Money for the time being till things improve. I hope our readers and subscribers will understand our predicament. In many places across the country, newspapers and periodicals have stopped production exactly for the same reasons. But we will not leave you news-dry even in such times. We will produce an e-magazine on schedule and we will ensure that e-magazine, with all its elements reaches you so that you get your regular fill of our stories, investment advice and insights into the financial world. Of course, our website www. outlookmoney.com will continue to update you on the latest in the financial world. We hope to resume regular print production as soon as things improve and we are able to restart normal working schedules. Till such a time, we request you to bear with us. Praying that all of you stay home and stay safe. 

Dreams Have No Expiry Date 

Being someone of that ripe age, Latika’s story about miseries and following the trail of opportunities to creating her own ferry of destiny, inspired me to a different height. In times when women are coming out of their shell and efficiently contributing to the economy, Latika did not step back thinking about her age, as dreams are to be lived without considering the age. She had her moments filled with obstacles, but her sheer desire to not overlook her talent and pick up the resources that she finds midway, only to give a shape to her dreams. I would like to thank Outlook Money for giving the deserving exposure to women like Latika Chakravorty. Shipra Sinha, Kolkata

Building Her Legacy

It was such a delight to read this particular article on how Manju Yagnik, with her passion and high skill, decided to excel in a maledominated domain. Her achievements and her sustenance in the real estate sector should be highly appreciated. I would request Outlook Money to come up with such intriguing articles, which is absolutely important for this generation to witness. Ishan Sharma, New Delhi.

Shore Amid The Ocean Of Fetters 

Life of an entrepreneur might seem all shiny and successful, but there goes a lot of blood and sweat to garnish such a lifestyle. This cover story on interviewing an entrepreneur from dawn to dinner was an excellent one. I loved how the entire article is weaved under a timeframe and how at the end when she sits for dinner, she looks at her workaholic life and smiles while raising a toast. Tejas Malhotra, Mumbai 

Securing The Self Against Maladies 

I loved the insurance article, which talks about the necessity to buy health policies so that they do not have to face any miseries when any sickness might arrive. It was very informative, especially the column that focuses on the varieties of the plan and alongside mentions the insurer, eligible age and what they cover. Rohan Desai, Chennai.

Young Fellas’ Financial Affairs 

I have always been curious about the concept of Gen Z being in a digitally advanced stage of this century, as compared to the millennial. Added to this concept, when Kalpana Pandey’s articlefocused on the credit score, it became all the more interesting. Gen Z’s fantastic ability to use digital platforms to equip them on and around credit. I enjoyed reading this and got to learn a new concept. Shruti Gupta, Mumbai

Regents’ Share In Fintech Realm 

Women leaders in the world of Fintech business is a story that needs to come to a surface level for the readers. Upasana Taku’s journey is really inspiring for thousands out there, who are out there achieving milestones. I being someone from this industry can relate to it to a far extent. The questions like, whether a woman is traveling alone for a business meeting, still exist. However, I believe a strong vision and a belief in one’s capability and talent is all that a woman requires. Aratrika Majumdar, Bangalore

Freedom To Enlighten And Empower 

I am purchasing outlook money magazine for a long time, but the March issue was profoundly beautiful. The personal finance section where it is mentioned that women are generally considered as the risk-averse, however, it does not mean that you have to shun the financial instruments, this statement is absolutely necessary. It is important for women to understand the need for the money to grow and not just keeping them in the savings bank account. The language was very lucid, and overall a great article. Souvik Pandey, Bangalore

reference covid economy :author - ARINDAM MUKHERJEE

Cash & Courage In CrIsIs Is PrICeless Long-term investors should buy into extreme bouts of volatility

By Yagnesh Kansara

The coronavirus outbreak is like a Lehman Brothers moment for the corporate world but in a much larger sense, particularly for the emerging and developing markets. The Lehman Brothers crisis was only limited to impacting the banking/ financial markets, associated with financial aspects of corporate with respect to raising capital and capex. The crisis did not have any impact on the general growth and consumption cycle of India, China, South Asia and West Asia. Furthermore, the crisis was limited only to the banking level and had not spread to the day-to-day functioning of most companies. The stock markets, as measured by the benchmark indices, have fallen by around 25-30 per cent this year, and for once this has been in sync with global markets as a whole. This heightened volatility and the general risk-off attitude in the global markets is due to the uncertainty and fear created by COVID-19 and the unprecedented actions of the governments to contain it. Coronavirus is a serious set-back to the economy in the short-run and

a death knell to the financial sector in the long term if this menace does not stop. Mainland China and Hong Kong‘s experience is that corona can be thwarted and controlled. However, it is to be seen how this stops worldwide. India is relatively insulated given the relatively weaker link to Asia’s supply chain. Given that the incidence of coronavirus has been surprisingly low in India (probably aided by under-reporting but also helped by warm weather) and assuming that it does not increase in the coming weeks. Rahul Singh, Chief Investment Officer (CIO) – Equities Tata MF, says, “We prefer to analyse the impact of a global slowdown and possible China linkages on the earnings of specific sectors instead of a broader impact on India’s economy as of now. China is a large supplier of raw materials, components and intermediates for textiles, pharmaceuticals, chemicals and consumer durables/electronics. Decline in Chinese export capacity will impact