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Buzz in Market

ICICIdirect Research Posted on 05:47pm 12-Mar-2020

CoVid19 panic - Exit or a buying opportunity?

Globally equity markets (including India) have taken a beating, correcting significantly in a relatively short span of time. A million-dollar question right now, Is it a buying opportunity or an exit indicator to enter later? The novel corona-virus has spread from a few hundred cases being reported pre-dominantly from the Hubei province of China, to all over the world taking the total tally of affected people globally to more than 1,20,000 and the death toll also rising at an alarming rate. It is definitely going to have an impact on global growth. But is it discounted?

Historically, buying at sharp dips has been rewarding as markets recover after initial reaction but timing may be unknown. Do you think this time it’s different?

Share your thoughts with fellow 120000 traders and investors on iCommunity.

Kindly note that this thread is meant for discussion only. If you have any query, kindly ask it under "Ask a Question" tab.

  • Community User Till April 20 end there is going to be unparalleled uncertainty, not even the 2008 shake up had any such steep falls like today 12-03-2020. The same is an opportunity for long term investors.
    For traders it is an opportunity that presents itself.

    05:58pm 12-Mar-2020

  • Community User Buying opportunity

    08:07pm 12-Mar-2020

  • Community User Till one book their losses the losses are just notional. Look at all these panic as a temporary aberration and opportunities to accumulate slowly into Large Cap market leaders for long term.

    10:16am 13-Mar-2020

  • Community User If only we knew the rock bottom :)

    10:34am 13-Mar-2020

  • Community User Nobody can predict for sure, but the way our market has recovered after the initial bout of panic sell is quite reassuring. Another positive factor would be that summer is round the corner and most likely the virus will die of its own when temperature rises above 30. So have a long term view and accumulate Large Cap quality stocks which are now available at a much discounted price after every sell out or dips.

    01:06pm 13-Mar-2020

  • Community User In India the temperature is supposed to go up now to kill the virus, but it s delayed in delhi and north India. My hopes are that the virus will die down by April 3rd week. And market will go up unless something more damaging doesn t come up from Govt.

    07:37pm 14-Mar-2020

  • Community User Human body temperature is 37 degrees it cannot enter the body!

    07:51pm 14-Mar-2020

  • Community User Market may be falling next week. Best to buy blue chips.

    08:52pm 14-Mar-2020

  • Community User Advice is good but note that situation may worsen with corona threat persisting and in th

    chly valued will also take beating

    09:38pm 14-Mar-2020

  • Community User I mean large caps are also not safe heaven. However quality mid caps with long track record and at attractive pe multiple can be better choice.

    09:40pm 14-Mar-2020

  • Community User Great time to invest for long term. At any level nifty below 10000 mark

    09:51pm 14-Mar-2020

  • Community User it s buying opportunity

    10:18pm 14-Mar-2020

  • Community User keep buying in equity

    10:19pm 14-Mar-2020

  • Community User Don t invest all your money, identify good and reliable stocks and accumulate on each dip

    10:29pm 14-Mar-2020

  • Community User It is buying opportunity.Feel sorry that we are fishing in troubled waters but one should go ahead and take risk.

    10:59pm 14-Mar-2020

  • Community User Whether is Corona or not, any volatile market is not worth entering or exiting for long term players. We may look at bluehips which are at bottom to enter, nothing more....

    11:10pm 14-Mar-2020

  • Community User Monday market will be up by 1600 points nifty 700
    Bank nifty 1200 up ✌️👍

    11:34pm 14-Mar-2020

  • Community User The Market is oversold and Global Markets may go up for a short time with the news announcements like reducing interest rates, introducing more liquidity, dialogue between Saudi and Russia etc., . But the macro challenges are not going to be resolved in short span of time. Some global markets are almost entered in to Recession phase. Every recovery is an opportunity for shorting for atleast 3 to 6 months. Some sectors are very badly hit and have reached debt trap and recovery is not possible in a reasonable time. The coming quarterly reports and the guidance of the companies are not going to impress the market. May be staggered buying for a very long term is the only option.

    01:16am 15-Mar-2020

  • Community User IAM not selling my mutual fund till 2050 what ever happen ready to accept

    01:31am 15-Mar-2020

  • Community User i feel this opportunity in one in life time,if i equate it with histery it was 1930 palegue falloed by great recession,and again in 1942 stag inflation.
    if it goes worst then 1930 will arrive those invested in 1930 reaped gold in 1942.it is play of timing only so buy.

    07:16am 15-Mar-2020

  • Community User I think it is better to buy mutual funds rather than direct shares to avoid major risk.Also buy good Equity MF in step by step at every deep.

    12:04pm 15-Mar-2020

  • Community User Markets are falling globally and entered bear phase, there might be some rise in indices but it will be in downward cycle for at least nest six months to one before it bottoms out. Hence any rise may concidered to exit the market and keep the cash to invest may be agt six months or a year.

    02:13pm 15-Mar-2020

  • Community User one year will be the time it will take to really feel the impact of covid 19 . so be careful and avoid big buy . may by sip or SEP would be a good option

    06:55pm 15-Mar-2020

  • Community User Buy in sips and do not forget put the money in those companies who are pillars like HDFC group, , LARSEN etc, these companies will bear the storm and give excellent returns over next 10 years

    08:15pm 15-Mar-2020

  • Community User I have been in this markets since 2003, i have seen the fall of 2004 elections falls when govt was undecided and 2009 elections circuit rally. We should start accumulating good quality stocks because we can t predict the bottom. It is good time to put your cash into equity , Mutual fund etc.

    10:28pm 15-Mar-2020

  • Community User Younger the investor, more the risk taking ability.

    12:22pm 16-Mar-2020

  • Community User staggered buying is the ideal option for investors, for traders intermediate TOP is placed

    12:35pm 16-Mar-2020

  • Community User Its an exit opportunity...As nobody faced this kind of pandemics in our lifetime...rate cut will also not help as there is no confidence for industry at this point to take risk...Already we are seeing almost all sectors are getting hammered due to the cascading effects of pandemic...And importantly nobody knows how long it will take the spread to continue and start recovering from lossess...

    04:22pm 16-Mar-2020

  • Community User I have been into stock markets for more than 18 years now. I started investing through MF followed by shares. While 2008 slowdown, i contd. with my SIPs which paid me very healthy returns later. Corona Virus is spreading, however, surely we require a medicine/therapy for the same, thus case here is bit different. I am collecting essential commodity shares e.g. HUL, Marico, Pharmaceuticals (Astraz, Pfizer, GSK Pharm) on every dip of 4% on Nifty. I have no shares of cos. with any kind of debt/ shares pledged, thus wish to gain in long run.

    04:52pm 16-Mar-2020

  • Community User Warren Buffett great saying , it is wise to be “Fearful when others are greedy and greedy when others are fearful.”

    04:59pm 16-Mar-2020

  • Community User Wait and watch should be the strategy in these days. During such volatile market charts , EMAs will not help.

    05:08pm 16-Mar-2020

  • Community User With one year horizon, quality buying at this level will be rewarding

    05:14pm 16-Mar-2020

  • Community User I am very new to share market & I dont my view counts or not. But I am thinking buy shares of good companies as much as possible and I am doing it from last several days. Not much but investing at least 30k on days when market falls 4%.

    05:22pm 16-Mar-2020

  • Community User you can go ahead and buy, if you have long term patience.

    05:23pm 16-Mar-2020

  • Community User I m also new but need to know how to do balanced investment for long term.
    FYI..I have already significant shares running very low which I bought back in mid 2018

    05:37pm 16-Mar-2020

  • Community User No body can predict a bottom , every investor should buy at further dips to even out , this mkt will again rise to same levels in 4-12 months

    05:39pm 16-Mar-2020

  • Community User If Long Term Should be Buy and for Short Term wait for 6 Trading Sessions

    07:03pm 16-Mar-2020

  • Community User I am pretty much new into share markets. But As i have observed some trends before. Its recommended to buy some shares of good company like TCS, Reliance etc

    07:22pm 16-Mar-2020

  • Community User Just put money EIP in every decline its become a good after 5ys

    07:27pm 16-Mar-2020

  • Community User Is it right to sell existing stocks and mutual funds? and invest after 15 to 30 days with the same amount to see some profit for long term.

    07:28pm 16-Mar-2020

  • Community User 100 month moving average is @ 8400..In 2008 fall also market got stabilised @ 100 month moving average..So may be be half buying can be done at 8400-8500 Nifty..After this 7000 iS next buying zone

    07:40pm 16-Mar-2020

  • Community User I believe this is good time for fresher and new investors to start buying share of big companies on a regular basis irrespective of the prices.

    08:02pm 16-Mar-2020

  • Community User IF you are already holding shares-this is not a time to exit because over 80% of downside risk is already behind you.At best the forward risk is 20%.
    Where as if you are wishing to invest for a horizon of 5 years ++,there cannot be a better time-blue chips will surely more than double in 5 years-there is no doubt in that.You should have the courage to withstand short term risk of a a max of 20%

    08:03pm 16-Mar-2020

  • Community User Buy in a staggered manner-dont look at nifty-look at individual prices eg at 400-buy 20% ,at 375-30%,at 350,30% and the rest 20% can be on either further downside or buy on the way up.

    08:04pm 16-Mar-2020

  • Community User Charts dont matter in this situation-overall sentiment is bad so every scrip is at the mercy of Corona

    08:06pm 16-Mar-2020

  • Community User yes, fundamental correction will happen

    08:06pm 16-Mar-2020

  • Community User As per my point of view, economy is strong, but fear is there, so keep investing for longer term and enjoy the profit

    08:11pm 16-Mar-2020

  • Community User Investing Is a personal thing. Don t look at what others are doing? They take decision based on their knowledge, strength and courage.
    Find out the money which you don t need for next 5-10 years. (Let it be 10 rs invest that money for longer term and on right price) slice that in to 10 piece s and on every dip invest it in market......
    You never know if this the opportunity for you... There and many Guru s of market shared their view and experiences...

    Some of them as below-----
    (Take your own decisions with consulting your financial advisor)
    1.WARREN BUFFETT: DON T BE A FOLLOWER--
    I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.

    2. PETER LYNCH: DO YOUR HOMEWORK.--
    If you don t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
    3. ROBERT G. ALLEN: THRIVING INVESTORS DON T PLAY IT SAFE.-- How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.

    4. SIR JOHN TEMPLETON: LOOK BACK TO GO FORWARD.-- The four most dangerous words in investing are: This time it s different.
    5. JOHN NEFF: LOOK FOR THE HIDDEN GEMS.-- It s not always easy to do what s not popular, but that s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.

    6. PHILLIP FISHER: DON T CONFUSE PRICE WITH VALUE.-- The stock market is filled with individuals who know the price of everything, but the value of nothing.

    7.JIM CRAMER: TRUST YOUR INSTINCTS.-- Every once in a while, the market does something so stupid it takes your breath away.

    08:12pm 16-Mar-2020

  • Community User It s almost impossible to time the market, every time...
    What matters is timing in the market
    Every investment need time to grow...

    08:17pm 16-Mar-2020

  • Community User I guess it would be volatile for next 2 to 3 weeks before you can see any direction in the market.

    08:28pm 16-Mar-2020

  • Community User Discipline,patience and not timing the market is some basic rules of investing.

    08:40pm 16-Mar-2020

  • Community User Well. The market is now 31000 from 42000. I guess it may go down further but not much. And ULTIMATELY Indian Economy in long term is bound to go UP and not DOWN. As such I believe this is a buying opportunity lasting in my opinion about a month. Off course my view is only LONG TERM.

    09:18pm 16-Mar-2020

  • Community User I think we should not try to catch falling knife and should wait for few weeks and then decide if we should buy or not.. current Corona situation is just a beginning. and as per my understanding we are not able to understand the actual problem, Corona can be cured that is not an issue. main issue is that it spreads like fire in jungle and we in india dont have enough infra to support that situation.

    09:23pm 16-Mar-2020

  • Community User so market will fall like anything once there would be long queues in hospitals and hospital/doctors will take their own decision to whom to save and to whom they can leave to die. Sad but it seems like near future :(

    09:26pm 16-Mar-2020

  • Community User Till this month end there will be huge volatile.

    Its a good time to buy equity shares with good fundamentals.

    Buy more shares on Dips.

    09:42pm 16-Mar-2020

  • Community User BUYING OPPORTUNITY

    09:57pm 16-Mar-2020

  • Community User Gold rush time for an investor with a time horizon greater than 2 years. Divide your investment into 4 or 5 parts--> so if you want to invest 10lacs, then divide it into 2lacs tranches. Given the uncertain situation, there will be multiple buying opportunites. Keep investing in stocks that you understand well. (not speculative stocks like yes bank etc) Build a portfolio of 10-15 stocks. Focus investment on these.
    For those who are already invested with large capitals, you should exit specific stocks on rebounds and re-invest on corrections. Market will indicate comfort once the uncertainties cool down, by that time you should have churned your portfolio.
    For small investors, best is to continue to do SIP monthly in index, large-caps and diversified mutual funds. max 3 or 4 funds. Good time for people who can surf the rough seas.
    If you feel too overwhelmed, then shut down the news- keep portfolio as it is and look at it after 2 years. You will be quite ok. All the best friends.

    10:03pm 16-Mar-2020

  • Community User On the impact of this uncertainty on economy- it is going to be a real impact-- world GDP will be affected maybe by 1%--- economists can predict. So the problems for global economy is real.
    India may net net profit during this mayhem- 1. Downside is limited - because it is not so integrated with the world (except stock market - unfortunately)2. upside - since we have strong companies which are globally competitive, they will mostly thrive. (not universally true, but largely true)
    2020 will be poor for the industries, so market bounce-back will probably happen only in 2021/22.

    10:09pm 16-Mar-2020

  • Community User One should start buying quality Blue chips now, in a staggered manner. In case of a V shaped recovery, many might miss the bus.

    10:28pm 16-Mar-2020

  • Community User It is a good opportunity to invest in NIFTY. NIFTY will not go down as other shares may but the rebound will be much more once you hear a good news

    10:47pm 16-Mar-2020

  • Community User Yes... it is time to buy and wait for long term to see the profit

    11:01pm 16-Mar-2020

  • Community User I think NSE will touch 8000 tomorrow or next few days before 23.

    11:08pm 16-Mar-2020

  • Community User Covid is a temporary fear. If your are looking for building long-term portfolio, then consider this as very good opportunity. Market always works with greed & fear. Select which side you want to be.

    11:11pm 16-Mar-2020

  • Community User Every fall is an opportunity to rise. I think, this fall has not come due to faulty functioning of our manufacturing or trading companies. This fall is due to a pandemic CORONA . It means our fundamentals are still sound and one may go for buying scrips after due dilligence

    11:42pm 16-Mar-2020

  • Community User Corona and Yes Bank failure have affected mutual fund returns also a lot

    11:45pm 16-Mar-2020

  • Community User I would guess stay invested and if you have reserve fund, invest more. I don t think one can time the market. And STOP looking at your paper value by quickly browsing the portfolio.

    11:48pm 16-Mar-2020

  • Community User Better sense would be to let it stabilized and monitor spread of COVID-19 in India from week to week. If the numbers are growing exponentially (assuming governments report correct number), we r in trouble as everyone.

    11:57pm 16-Mar-2020

  • Community User I believe there is no point in timing the market. Patience should be the call. It is not a one off phenomena, but a combination of factors and even if one gets resolved others may not. Mostly Yes Bank fiasco will get settled, but Corona effect on the economy and by implication the market is going to trouble the sentiment for a longer time, during which one does not know what may happen.

    05:05am 17-Mar-2020

  • Community User Time is not settled yet , universally people remain in door to prevent measures this will effect the market for some time say 3 more months right now either exit for short period and enter later on or keep adding as they come down.

    06:22am 17-Mar-2020

  • Community User There were many virus attacks in the past such as Ebola and H1N1 which didn’t create as much panic as Covid -19 due to less social media coverage. These did not impact china much which is a major supplier for many businesses. I believe market has panicked and corrected a great deal and it can fall further with the bottom unknown. Purchase in dips and once market starts to grow watch the show. But i advice to hold a bit of cash to enter at the lowest

    07:35am 17-Mar-2020

  • Community User Opportunities are not coming often like corona. every 7/10 years you get it grab it

    08:33am 17-Mar-2020

  • Community User Well it is just a panic situation. it s a right oppertunity to buy in deeps. Take advanrages of this bear market & gain profits in next 3 to 6 months

    08:41am 17-Mar-2020

  • Community User Just wait for two weeks, if corona cases does not rise significantly in India
    market will go up all the way.

    11:01am 17-Mar-2020

  • Community User Deploy your excess money slowly (5 to 10% at a time) over a period of 2 months and accumulate good stocks. This could be rewarding over long period.

    12:37pm 17-Mar-2020

  • Community User i am confused. Because such a situation I have never faced before in the last 20 years including 2008. If you buy now, what if the script goes down further. Or should I sell every thing to cut further losses and wait for greener pastures ahead after 3-6 months?

    01:08pm 17-Mar-2020

  • Community User India enters next stage of Corona and has about 30 days window . Though Govt is doing the best and fight against virus is better than even some of the world advanced countries. Still, there is huge risk looking to area, topography, population, demography, literacy, people exposure to fight epidamics. Market is bound to see deep dip. Better stay away.

    02:56pm 17-Mar-2020

  • Community User Accumulating good stocks on dips could be a good strategy. Now that reports are coming about ways to treat the infection successfully, turnaround may not be far. Govt also looks serious about containing the outbreak. However, our public health infrastructure to deal with such epidemics is extremely in-adequate. We may not realize, it a world war of a different kind.

    03:01pm 17-Mar-2020

  • Community User Nobody on this universe can predict for the natural calamities hence to pray god for mercy is the only option.
    Regarding equity market nothing has changed in last 30 - 40 days but effect of the clamity on the performance of companies will be known in next two quarters hopefully.
    Now as an investor should not panic but we have to check the valuation & prospect of the individual stock and invest gradually for good returns over period of 1-2year.
    We all know that in any situation basic necessities are always required by us hence such goods production will have to continue in the worst case also.
    Lets all pray for god s mercy ...

    04:38pm 17-Mar-2020

  • Community User Wait and watch is the good strategy. The market is expected to reduce another 2000-3000 points and slowly one can start accumulating depending on the intuition one has.

    04:57pm 17-Mar-2020