Coronavirus unlikely to take a toll on Indian stock market, says Credit Suisse

Coronavirus has taken the entire world by storm and till now over 130 in China have succumbed to this disease. The rapid spread of coronavirus has also shaken the stock markets around the world. In fact, market participants have been making cautious bets in the equities after the virus began to spread to different countries, claiming lives.

Credit Suisse in its recent research report cited vulnerable sectors that might be affected by the disease.  “Among sectors, the virus reinforces our confidence in existing ‘overweights’ in IT and internet and ‘underweights’ in consumer ex-internet and banks. The virus should not greatly affect global IT demand and could help internet names with e-commerce businesses,” it stated.

“Among sectors, we feel comfortable with our positions in the biggest sectors. Our key ‘overweights’ among large sectors are IT and Internet. Global IT demand and production should be largely unaffected by the virus, and fear of shopping malls could enhance e-commerce purchases,” the report further added.