Experts foresee negative economic impact

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Markets update

Equity markets ended in green during a truncated trading week
Sensex closed at 31,159.6, up 12.93% and Nifty closed up 12.72% at 9,111.9. Nifty 500 also gained 12.1% during the week
India Services PMI declined to 49.3 in March 2020 from February’s 85-month high of 57.5, and below market expectations of 52.5
India’s Industrial Production Growth accelerated to 4.5% year-on-year in February 2020, from 2.1% in the previous month
Experts foresee a negative impact on the economy during the first half of FY21 and expect recovery only during the second half of the financial year

Other updates

As of Friday evening, 16,11,981 cases of coronavirus and 96,783 deaths due to the disease have been reported across the world. India has reported 6,412 cases and 199 deaths
Last week, PM Narendra Modi told the parliament floor leaders that the situation in the country was akin to a “social emergency” due to the coronavirus pandemic. He also indicated that the curbs would be extended beyond April 14th
Both Punjab and Odisha have announced that the lockdown would be extended till April 30th
States across India have also identified hotspots which will be locked down completely, with no person allowed to leave or enter these areas
A localized area where 10 or more cases of infection are found is known as a disease cluster. An area is called a hotspot when there are several clusters developing in any particular region

Add stability with large-caps

The Top 100 Stocks smallcase comprises 2 ETFs that represent the 100 largest companies. It uses a proprietary algorithm to generate a weighing scheme that minimizes risk
These well established and reputed companies have long standing operating histories that enable them to deal with market volatility much better than their smaller counterparts
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The 2 ETFs that provide exposure to these companies are Nifty 50 ETF and Junior Bees ETF

Naveen K R

Senior Director, Windmill Capital | The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Windmill Capital Private Limited does not uphold nor promote any of the views / opinions. | Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645)

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