The center has declared that few other services, along with only essential businesses and services, will remain open until May 31st, 2020. Now India is looking forward to easing the lockdown. But the impact of Coronavirus is already visible. Millions of people are already unemployed. Because of the fear of this pandemic, people are not ready to go out other than buying essential things. Most of the Brick and mortar businesses don’t function due to the low influxes of the crowd. There has been an impact on Busses, Trains, Flight services. Sales of two-wheeler, cars, and Automotives has been falling.
Although different countries have already declared a huge stimulus package and slashed the interest rates, the world is expecting the worst recession in a century due to the Coronavirus.
In these surroundings, some of the questions are, “How bad things will turn out to be?” , “How is this going to impact the GDP ?” and “How long will it take to get the economy back to normal?”.
Let’s talk about the current market situation first. The market is dropping like a free-fall, and there are hardly any signs of earnings. The experts believe that the big organization will show bad results in the market in the upcoming quarters.
Basic types of the economic sector
Five significant sectors are currently responsible for our GDP. They are
- IT
- Banking
- FMCG
- Agri
- Pharma
But not all the above five sectors are responsible for the growth of the economy. Some of the segments are sole to serve people. Currently, IT and FMCG sectors are making profits.
Also, RBI has slashed significantly in the interest rate. Because of this, liquidation in the system will be high, and people buying power will be improved.
Firstly, people will focus mainly on their needs instead of buying luxury products. So if you invest more in the essential products, then you will get a good return. For example, FMCG and Agriculture are some of the best sectors to give you good returns.
In the upcoming days, Inflation will go up a little bit. But my gut feeling is, IT and FMCG sectors will do better. So if you are interested in investing in these sectors, talk to your advisor.
If you look at the other sectors, then they may not do good in the short term, but they will probably do very well in the long run because the prices for most stocks are down by 50%-60% due to the Coronavirus crisis. So if you are currently planning to invest in the market, then talk to your adviser and buy stocks from a good company, and you will get good returns.
From the expert analysis, It suggests that there will be a decline in GDP, and it will take 6-8 months for the market to recover once the Coronavirus pandemic gets resolved.
We hope you found this article very helpful. To know more about GDP, please contact us.
Regards,
Investment Unblocked
Bhubaneswar, Odisha