Is it smart to buy shares amid coronavirus when the prices are dropping?

I think it would be a terrible idea to invest in stocks now that the market is in consolidation and volume lightens. Indian capital markets are heavily impacted by Foreign Institutional Investors (FIIs) buying/selling. In last month, the FIIs have pulled more than Rs. 60,000 crore from equities left the panic selling within the Indian capital markets. The pandemic has put our economy and businesses all together in grave danger.

People are under lockdown and don’t go to work, don’t visit restaurants, schools, etc. If it keeps going on, there is a possibility that the market further goes down. Thus, for the time being, I would strongly recommend staying put and watching.

Timing the market is one of the things that even the professionals can’t do. You must’ve heard of the phrase that the best time to buy a stock is today and the next best time was yesterday. As you can see that the Indian capital markets are going through a downturn and if you are a long-term investor then you shouldn’t be asking such petty questions. The market has fallen more than 35 per cent in just a couple of months. More than 90 per cent Nifty50 stocks were at 52-week lows. But, investors haven’t lost faith in the market.

As per sources, the equity funds in India have witnessed the net equity inflows of more than Rs. 11,485 crores in just the month of March. It has the highest equity inflows in the last 12 months despite the sharp withdrawal of FIIs.


It is a good opportunity for long-term investors to invest in fundamentally strong stocks of well-established companies with zero debt and strong business models. Because, when the market starts to recover post-coronavirus, these stocks will be the first to appreciate in value. Any investor with a long-term investment objective should invest in a staggered manner to build wealth for future goals.

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