The deadly new coronavirus has taken over the world claiming over 2700 lives and 80,000 plus confirmed cases globally. The virus has been spotted in almost 25 countries and has sent the markets around the world in alarm. As per the WTO reports, China is the leading country in exports and the second-biggest importer of merchandise. Any disruption in the economy of China is likely to affect globally. India being the largest trade partner of China is at a huge risk. Looking at the previous epidemic outbreaks, global markets have always shown an upward trend within the first 6 months. For instances during the case of SARS, the market was down by 3.4%, but within 6 months it became bullish and was soaring up by 17.3%.
The Indian market has an advantage over the global falling of stock prices as China is the largest consumer of crude oil and due to falling of prices in the market, the oil prices have become cheaper, thus helping the Indian economy to reap the benefits as almost 80-% of crude oil of India is through import. But the overall picture of the economy would be hit severely as India depends on China on raw materials, which are soon reducing. The automobile industry is struggling in India, the assembly lining for finished product formation is done in China and due to the shutdown of industries, the automobile market is further going to struggle according to reports. Almost 67% of pharma is imported from China by India and the pharma market is also going to have a big hit in the next few weeks. Asian paints, plastic industries are likely to benefit due to the fluctuating global markets.
Warren Buffet, on the other hand, is cheering the global market falls, by stating that he would want to buy food for the rest of his life and want the prices of food to fall further down. He also stated that he won’t be selling any of his stocks as he feels that experts have predicted the earning power of the industry on a 10-20 years’ time horizon and the epidemic has not changed the long term outlook of these stocks.

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