I have been reading many articles lately and also speaking to couple of my friends on, How is the market going to respond post lockdown? and How has the Novel Corona-Virus has impacted the market trends?
As we are aware, the life was moving like anything, stock markets were booming, people were buy new phones, watching movies every weekend, gorging snacks, exploring the world, etc. But all this came to a sudden halt from the mids of March 2020 - after the lockdown. Industries closed, offices shut, transport halted, everything came to a stop.. just like we see in any movie (Goosebumps!!)..
But finally, especially in India, everything seems to be trying to come back on tracks to some extend.
Even still, many things are going on in the minds of many peoples... and yes we are trying to find answers to all such questions. Like in my last blog is shared the views of the industries (https://sagarpatole.blogspot.com/2020/05/impact-of-lock-down-industries-sneak.html), this time again I wrote about the issues what everyone is going through..
How is the market going to respond post lockdown?
How has the Novel Corona-Virus has impacted the market trends?
The answer is pretty same for both..
Lets ask this question to ourselves "Should I buy 1 kgs of potatoes at Rs.40 and make chips or should I buy 1 kgs of Chips at Rs.40??" Well you have the answer.. People are currently thinking in the same way. No doubt, people will buy only things that are necessary (essentials and non-essentials both). We would restrain ourselves from buying anything that won't be of any use at the moment.
Earlier I used to go the super market and buy things that I might use in future, but this time when I walk around, I buy only that is REQUIRED. Further, I have also started using more of my debit cards and cash, as compared to the credit cards. Thus reducing my liabilities.
Similarly, many people are doing so.. This not affects one industry or a shop.. but everyone. Just as another example this affects the new house buyers and loan departments.. Imagine.!
Referring to the article in today's CNBC by Nimish Rustagi, the author mentioned that people will buy more amounts of product in bulk than like buying earlier as per the days requirements. Prefer stocking. Do more safe and risk free investments like Fixed Deposits, NSC's etc. Do read his article : (https://www.msn.com/en-in/money/news/living-in-covid-19-world-and-aftermath-how-indian-consumers-will-buy/ar-BB14xR3I?ocid=msedgdhp)
Also what the Industry 4.0 is predicted to be based of IoT, the e-commerce and e-entertainment will really take a surge.
A must read I would say..
Coming back to the questions, the market to be honest will be slow and down for next 5-6 months. As more job cuts are been announced everyday, more things are going to get hampered. But, the quicker we are out of this pandemic and get many people back to work, the cycle of everything starts moving... So everyone's targeting the things to rise back and be normal till Diwali i.e. November. But, till then we only have to focus and be patient, on how can we sustain and keep everything intact.
The chain of dependency needs to be maintained...
Do share your views and suggestions such that I can improve and keep on updating more on the blog..
Thank you for reading.... Take Care..
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