Question

Discuss the main challenges and opportunities for investors and other stakehokders in the stock market, in view of the COVID-19 pandemic.
[20 marks]

Answer 1

Ans: Challenge and opportuinites for investors in stock market in covid 19 pandemic.

Covid 19 made the stock market turmoil for investment.

According to World Bank. it urged some countries to go for comprehensive policies for getting long term economic gain or growth..Stock market crashed due to covid 19.

As per investment rrule , one should go for buying stocks when there is good time i.e stock price getting cheap.

Investors have to go for long term investment options and purchase bulk to get maximum return in future.

The opportunities are lying on the market , i.e housing project which will generate profit in future. it is one option avaliable in real estate sector once lockdown over it can be attractive for investors.

Stakeholders like Government , owners, creditors, suppliers agencies are need tob comprehensive in their part to control this situation.

Instead of panicking one should set back and invest in long runbecause a rise of 200% and fall of 30% can be manageable in long run.

Investors need to be a realistic rather than expecting overnight return. It is the time to rebalance our portfolio and risk.

So investors have to hedge risk in down market expecting potential growth in future time.

The opportunities at this time is to remain invested with diversfying risk and maitain adequate liquidity atleast 30% in individual portfolio.

No leverage should be taken by investors

One should invest in mid and large caps.. Be attentive to Gold investment as its price will go high as per expert report. so gold investment is must.Another opportunities is to invest in futures, for indian investors Nifty bees and nifty futures are most lucrative option avalibale according to expert recommendation.