Coronavirus Fears puts stock market in to correction

News Desk

Health conditions usually do not impact share market of a country but it is not the same with corona virus that reportedly started in China and has impacted many countries. So much that many countries stopped arrival of people from certain countries.

Experts point out that the virus has now spread to 47 countries and this has put pressure on businesses and supply chains across the globe. And this is the reason why stock market too got the jerk.

The global stock market slid for the sixth straight day on Thursday. Investors worldwide grew worrisome that the coronavirus outbreak could cause a recession as it squeezes corporate profits.

India’s stock market is drawing increasing foreign investment as the country presently remains relatively unscathed from the corona virus outbreak, that is threatening lives, economies around the world. But on Friday the market recorded a fall. Sensex reached 38,654.80, a fall of 1090.86 points by 1.40 am and Nifty reached 11304.30 recording a fall of 334.45 at the same time. Some blame it upon the global corona virus scare.

BSE Sensex Index declined 3% since January 20. This when a slide in Hong Kong stocks kicked off market fears about the pneumonia-like illness. As compared with 6.7% slide in the MSCI AC Asia Pacific Index. But India is the only Asian stock market getting foreign inflows for the year.

However the widening scope of the health crisis threatens to overwhelm global supply chains. Market experts fear that the outbreak could crush consumer demand. This is because people limit travel or prefer to stay home to avoid infection. The behavior change is observed in consumers as they stop going out to eat, avoid vacation, and can cancel even business trip. Many organisations cancelled their conferences as travel sanctions were likely to come or had been imposed across countries

Sourth Korea and America have postponed their military practice session. An American and 22 Korean soldiers have been infected. Japanese prime minister has appealed to close all schools for a few weeks as a