In just weeks, the Coronavirus pandemic has shaved off nearly a third of the global market cap. The Indian equity market bounced back valiantly on Friday, but the Sensex still closed 20% below the peak achieved two months ago. Investors can get some cold comfort that other markets have fallen more. The spread of the virus has triggered panic across the world and shaken the confidence of investors.
Making things worse is the crude oil war between Saudi Arabia and Russia, which has injected further volatility in the market.
The volatility index of India is around 57.09 which indicates higher volatility in the near term.
But, there is good news about this crash . In the past various other diseases like Ebola, Swine Flu, Bird Flu, and many other diseases had taken a similar toll on Indian stock markets which saw 25%-35% fall in Indian stock markets but short thereafter when effect of virus had reduced then recovery had been very sharp which further indicates that when coronavirus will reduce in near future then Recovery will be very fast and sharp.
Best strategy according to me is to do bottom fishing in the quality stocks and that too should be done through SIP.
Remember- Money always changes hand when there is volatility in the market