As per recent global report, global stock markets have sunk further despite the central banks of USA and other banks around the world by announcing a co-ordinated effort to ease the effects due to corona virus. However, many investors, agencies and brokers are really worried that banks are now have few options left to combat the impact of the Corona Virus as report said.
Similarly, Construction, Transport, Chemical and Manufacturing sectors are likely to be badly affected by the corona virus pandemic there is around 95+ countries in the world, says the report. However, India’s top imports and exports items such as Crude Oil, Gems and Jewellery which is collectively account for 46% of total imports are relatively protected from the public health crisis in China, as report said by ICICI Securities
Though to keep an eye on the severity of the virus,World Health Organization (WHO)declared a pandemic situation and that’s why global financial markets have been on the edge. This virus spreads all over world and this is very severe in China, Italy and Iran as of now and the virus has reportedly spread about to 95+ countries.
The Novel Corona virus was originated in Wuhan city of China towards the end of 2019 around 4000 people died as well as more than 1 lakh people infected in Corona virus and more than 6000 people died worldwide. The whole world goes on panic and death toll due to the virus is still very high given the number of infected people on daily basis. India’s total imports of USD 507 billion in FY19, 26% , that comprises Iron, Steel and In-organic chemicals is slightly affected.
This is expecting the impact on Iron and Steel will be moderate because India imports around 11 % of its iron and steel from China. However, South Korea is the biggest importers of Iron and Steel of India that imports 20% as of now. Moreover, we expect the impact on In-organic chemical is to be moderate as well since India imports almost 15% of its In-organic chemicals from China. There are some items those are heavily imported from China such as Electrical Machinery, Organic Chemicals, Mechanical Appliances and Tools, Plastics, Optical as well as Medicated Surgical Instruments items are collectively account for 28% as report said.
Some sectors such as construction, transport manufacturing and chemical manufacturing and machinery manufacturing are likely to be badly affected and shutdown in China and in some other countries like Italy and Iran also. So, that’s why presently India can exports only 5%to China and expecting major impact on shipments will not be affected due to corona virus.
The European Central Bank left interest rates on hold at its meeting by this week by contrast to rate cuts by both Federal Reserve Bank and Bank of England. The Federal Reserve Bank promised to inject trillions of dollars into short-term funding markets after the US government bond market came under severe strain. Whereas Bank of Canada cuts interest rates by another half-point in an emergency cut so far. The Central Bank said it lowered its benchmark target rate to 0.75% to 0.50% as basic-point of reduction to keep an eye on the current pandemic situation.