InvestorQ : I am worried that the Chinese virus pandemic could be quite dangerous for stock markets in India. What is your take and how do you see the impact on Indian markets?
NISHA Nayak made post

I am worried that the Chinese virus pandemic could be quite dangerous for stock markets in India. What is your take and how do you see the impact on Indian markets?

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1 year ago
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While the virus began in China, the markets are really worried because this virus has now spread to over 20 countries including Germany, Australia and the United States. In fact, fatalities are rising and China has already reported an increase in fatalities and infections as the virus has claimed over 150 lives. Already, a total of 6056 cases have been reported in 18 countries and territories. To add fuel to the fire, the Chinese authorities have admitted that the virus was already out of control despite aggressive steps to limit movement for millions who live near the centre of the outbreak.

Now, the likelihood of the virus disrupting global businesses as well as the world’s second-largest economy appears to be growing by the day and that is spooking the markets globally. The Corona Virus has an incubation period up to 2 weeks before the persons infected start showing signs of affliction. The bigger challenge is managing the spread of the epidemic.

The panic is evident as nations including India and Italy are evacuating its citizens from the afflicted areas of China. Already commerce is being hit as airlines are halting flights to Chinese cities as virus spreads. In fact, airlines across the world have suspended more flights to China as governments issue advisories and clamp down on travel to stop the spread of the virus. British Airways has already halted daily flights to Beijing and Shanghai from London’s Heathrow airport and has advised against non-essential travel. Even Cathay Pacific of Hong Kong plans to cut capacity to China by 50. IndiGo, Air India have already suspended flights between India and China

Things could get more serious from a political and economic perspective if the World Health Organization (WHO) imposes an emergency. In fact, most of the WHO’s criteria for declaring a global emergency have been met. Doing so can hurt host countries because it leads to flight cancellations and travel and trade restrictions.

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