Question

What is the outlook for the remainder of 2020 for equity markets?

Answer 1

The equity markets are directly correlated with the economic situation prevailing in a country. The current economic scenario is full of financial crisis due to the prevailing pandemics in the country. The finacial anaylyst and top brokerage firms has hinted at a wider level of recession that is just standing in front of the economy. The estimated GDP of the country has fallen drastically. Half of the states of the country is goin through a lockdown. The demand graph has fallen drastically due to the on going pandemics.

The after-effects of such pandemics might result in a huge financial loss to the economy as the company will be suffring huge losses due to the shutdown. This might result in a in-capability of the companies to service their debts. This will eventually be a first step towards a possible financial crises.

Considering all the above discussed facts, the outlook towards the Equity markets for the remaining 2020 is not very bright and positive. The chances are that the market would go into a 'bear phase' for atleast the remaining year. The market would take atlest an year to recover from the losses and the after-effects of this ongoing pandemics.