It is an event of a century and everybody is grounded, b_locked, and the world is at standstill. Nobody needs this insight, only a little awareness will make us understand the seriousness of the current situation. Crude falling, gold escalated 50% in 14 months and dollar inching north. The largest consumer of the world USA is struggling to wade through this crisis.
However, the market is on and trades are getting executed. Pharma, FMCG, and IT is showing resilience for obvious reasons, and other sectors like infra, NBFC’s, chemicals, commodities taking the hardest hit. Most of the stocks are at multi-year lows and still its downward move is not arrested.
Jp investment recommends max. debt allocation (~70-80%) to protect further hit on the portfolio. The market has its own way to assess and react to it. We find little reason to conclude that fresh flows will make to the market. Switching to a debt portfolio is recommended.
It’s a view that the market might test it’s previous low of 7800 and can dive south further if DII fails to infuse fresh funds to arrest its downward journey.
Tough time ahead for equity holders.