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If you hold your units for a year, the impact is about 0.005%, or in other words negligible.

Rising numbers of COVID 19 cases, Moody's downgrade, and challenges for the MSME sector were countered by a spree of capital raising and upbeat sentiment to keep markets positive in June

A rating downgrade for a country tends to affect its ability to attract investments. However, it is not the only parameter. The sovereign rating downgrade of India by Moody’s was not the only rating downgrade. And no this is not as disastrous as it looks.

The markets in May turned choppy once again as the stimulus package failed to raise spirits. While the long term prospects remain good considering the resilience of the Indian economy, short term concerns have started raising their heads. Post lockdown performance of companies can tell us more in the coming months.

The short answer is, you don’t need to worry. Scripbox did not recommend any of the funds which had exposure to these securities. In fact, preventing such exposure is one of our algorithm’s key objectives

We have looked a little deeper into the announcements which will have a more direct and immediate impact on individual citizens and have set them out in this article. Separately, we have also listed out in the Annexure the details of all the other announcements made by the Finance Minister.

A virtual economic shutdown in April has put many companies in a tough spot, only the best companies with enough cash reserves are likely to come out on top.

The post-COVID-19 phase is likely to see a significant recovery in the stock prices of good and proven companies. As uncertainty goes down, the prices of these stocks are very likely going to jump up, if history tells us anything.

The future trend in the stock market will finally get defined by the aggregate earnings expectations from individual companies in an economy.

We were expecting the RBI governor to step in and provide liquidity and rate cuts. The RBI governor did just that today. He declared a string of measures like cutting the Repo and the reverse repo rates, cutting the Cash Reserve Ratio (CRR) by 100 basis points, injecting liquidity of Rs 3.74 lakh crores in the system etc. All this should cause the interest rates to go down (and hence bond prices to go up). At the time of writing this piece, the interest rates were indeed down.

Financial markets worldwide were impacted heavily by the COVID-19 pandemic as necessary lockdowns stress businesses and the economy, hopefully temporarily.

Risk shows up infrequently, but it is high impact. This is why one must always be aware. In the current set of events, it’s the risk attached to bond investing which has had a greater impact than equity investing. Understanding both the risk of bond investing i.e., credit risk and the risk in equity investing i.e., risk of quality, are important.