Goodwill Investor Education Initiative:
GoodWill Eagle’s Eyes !
With over 14.3 Mn Covid ’19 cases and over 6,00,000 deaths, world over the impact of virus has indeed been devastating and callous. All the nations without exception turn out to be shattering in hear and the way-out, only way out could be the vaccine soon to redeem the lost hopes. And the much awaited drug could perhaps turn the economic and social environment a little easier and allow us to breathe comfortably without being choked as is now.
But the vaccine being in news soon, the markets have already factored the arrival of the magic vaccine and started moving up like anything in the past few days. Yes, the call from the investors has been long and loud as the Indices today surged like wild fire as all I.T stocks like Infosys, Wipro, HCL Tech, Tech Mahindra apart from Bajaj Finance., Brittania, Eicher, M & M finance ..all gushed up -never before. We indicated just a couple of days ago that Infy is one counter wherein a lot of quick money could be made and that has come true today itself which has given almost Rs 40 per share. Another highlight today was the announcement of Right shares by M & M Finance at the rate of just Rs 50 against its value of Rs 220 today- a big bonanza indeed for the investors. Even the mid-cap shares have gone up and the index was up by 1 %. today.
But bankers are by and large quite skeptical as many businesses may not be able to square their positions by March 2021 with regard to dues relating to the ongoing moratorium period because of the delay in demand consumption. There will be more defaults from their clients in repayment of Principal and Interest as the recovery has been steady but very slow. This would in turn create a big hole in the wallets of banks and hence Banking shares are to be carefully dealt with if procured. Airlines, Hotels, Tourism, Automobiles, textiles etc., will take a longer time than expected to see their numbers in black and hence the recession would not be over sooner.
Even the World Bank, IMF and all are estimating that the GDP growth would be negative for India to the extent of at least 5 % if not more and the fiscal deficit would be an area of short – term concern for the Economic analysts.
So in all, the investors need to exercise utmost caution till the end of the year despite some respite and at least till the Covid concerns flatten up.
So Investors are requested to be quite vigilant and prudent while investing till the uncertainty vanishes by being quite choosy.
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