MUMBAI: Have you invested in any stock in the country stock exchange-listed companies? If yes, then keep your money where it is, as thanks to Coronavirus, the Indian stock market has been given a little push. Experts believe that this good run is likely to continue in the near future as well. Over the last month, the Coronavirus has become a global threat. It has not only hit the world’s second-largest economy China but also, flustered countries such as Taiwan, Hong Kong and the Philippines among others. The fast-spreading disease has claimed over a thousand lives, so far.
To contain the virus, the Chinese government has taken various steps, including the gradual shut down of public services and several manufacturing plants in the country. China is the largest supplier of several products in the world, be it spare parts, chemical, toys, lighting or oil. The US and countries belonging to the European Union (EU), which imported goods from China are now reaching out to other countries to fulfil the void. India is one such country.
According to market experts, global biggies are not only looking to acquire goods but, are also looking to invest in stock as well and it seems that the Indian stock market has caught their eye. Deven Choksey, MD, KR Choksey firm, says that due to the spread of Coronavirus in China, global investors are diverting their money to the Indian stock market. However, the hot money which is flowing in the Indian market is mainly pouring into the topline index stocks. The unfortunate part is that only very few stocks are currently performing well in the country.“The money is flowing into the top 250 Nifty and Sensex companies only. Most of the money is flowing into the large-cap companies only as small & mid-cap companies are yet to attract such global investors,” said Gaurav Khanna, vice president, research, Equinomics.
Why the rise?