The rapid spread of the novel coronavirus (Covid 19) across the globe has got investors worried about the impact on the financial markets, especially equities. In such a situation, the question on the minds of investors is whether to stay invested or exit.

Equity markets in turmoil as the virus spreads

Equity indices worldwide, including India, had a tumultuous 2020. The Dow Jones and FTSE 100 indices tanked ~26% and 25% respectively, while emerging market indices RTS (Russia) and Bovespa (Brazil) plunged 35% and 37%, respectively, on year-to-date (YTD) basis till March 25, 2020.

The story was no different back home with the Indian benchmark indices (S&P BSE Sensex and Nifty 50) down 31% and 32%, YTD. In fact, trailing the manic global sell-off, benchmark indices saw their biggest one-day point’s fall with the S&P BSE Sensex down 3935 points and the Nifty 50 declining 1135 points on March 23, 2020 giving a massive jolt to investors’ confidence