Stock markets worldwide have been trading high during January but by the end of February, fear has gripped majority of stock markets and we have witnessed strong selling pressure. However, the big question on everyone’s mind is how much overreaction has been to coronavirus? Indian markets followed the trend in the global markets and witnessed massive plunge last week. There will be many market analysts suggesting that investors should wait and watch and there will be many who will suggest that this is a buying opportunity.

Majority of companies won’t face any big challenges due to coronavirus. Some automobile companies have recently shared their concerns about delay in some shipments from China. However, as the situation will be back to normal in China, the local companies will work faster to catch up. We shouldn’t forget that many Chinese companies weren’t working on their full capacity earlier and they can manage overload for couple of months due to backlog caused by coronavirus.

The panic that has spread to the markets worldwide during the week, would surely settle soon. Some stocks will offer a good buying opportunity. We can also expect a pull-back rally in NSE Nifty, considering the quick fall we have witnessed.