Corona & its Impact
Coronavirus outbreak has not only created panic in masses but has also cashed the stock market worldwide. Coronavirus was first reported in Wuhan, China on 31 December 2019. But before going into detail about it, let us know some of the basic facts about coronavirus.
Coronavirus is a new virus that has started from the Wuhan city of China. Its first case was reported on 31st December and till then there have been three types of coronavirus, of which COVID-19 is the latest one which is impacting the whole world. As said above it is the 3rd one, this is from a large family of viruses that causes major illness. The illness is common which ranges from the common cold to more severe diseases like Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV).
The novel coronavirus outbreak has now spread to more than 121 countries and all the continents except Antarctica in less than two months.
The WHO authoritatively renamed the illness as Covid-19 on 11 February to the virus that causes the disease as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
The fast spread of the virus to around the world led to the declaration of an emergency of global concern.
WHO declared this as a pandemic as a public health emergency.
The novel coronavirus outbreak recent update says –
Globally, the number of cases has risen to 170,027, with a total number of 6,524 reported deaths across 157 countries.
The number of confirmed COVID-19 cases in India has risen to 115 as of Monday morning. With 37 positive cases, Maharashtra has the highest number of corona patients. In other states of India, the number of reported cases are-
Delhi: 7 ( recovered- 2, death -1)
Kerala: 22 (recovered -3)
Haryana: 14 (all non-natives)
Uttar Pradesh: 13 (including one non-native) ( recovered 4)
Karnataka: 7 ( death -1)
Rajasthan: 4 (including two non- natives) (recovered 3)
Telangana: 3 (recovered – 1)
Jammu and Kashmir: 2
Tamil Nadu: 1
Andhra Pradesh: 1
However, WHO is working hard along with the global experts, governments of different countries, and other organizations to provide advice to the countries about precautionary and preventive measures. On the same hand scientists and Doctors are trying hard to find the proper meditation and vaccination.
Well, health is not the only thing that Corona has impacted. Apart from this, it has created a situation of panic among the people which is followed by tons of Myths. Talking about the economic condition of the country, Corona has a great impact on it. The market has crashed and after 2008, 2020 is the biggest crisis which share and the stock market has witnessed.
Effect on Market & Import
In imports, India has a huge dependency on China, of the top 20 products that India imports from the world, China accounts for a major share.
Electronic imports account for 45% of it from China.
The number is huge as around one-third of machinery and approx. two-fifths of organic chemicals that India purchases come from china. India imports 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile phones from China. We all know that China was the first country affected by corona and has reported 1770 deaths as of Monday 16th March.
The Pandemic has led to a slowdown in China and all manufacturing operations were suspended. This has affected the economy of both China and countries such as India who were importing things from China.
Drop-in oil prices
A drop in global economic activity has lowered the demand for oil.
An all-out price war between two oil-producing giants, Russia and Saudi Arabia, has rocked global markets this week, with prices plummeting by more than 30% at one point to lows not seen since the 1990s.
An all-out value (price) war between two oil-producing countries- Russia and Saudi Arabia, has shaken worldwide markets this week, with costs diving by over 30% at one point to lows unheard of since the 1990s.
The shutdowns and restrictions on trade and closing borders by countries are taking oil prices to multi-year lows.
The Indian equity market bounced back on Friday giving some hope to the investors. Still, Sensex closed 20% below the peak which it achieved two months ago.
Share prices of the major companies including Reliance, Maruti Suzuki, Yes Bank and many more have fallen drastically.
Trading was closed on both BSE and the National Stock Exchange (NSE) as the Sensex and Nifty indices fell 10% each within minutes of market opening.
COVID-19 is a global issue now, the outbreak has impacted the whole world and has been declared as a national emergency by the World Health Organisation.
Along with the globe, India too is facing its impact. The pandemic has disturbed the supply chain disruptions from China and has negatively impacted the stock market and Economy.