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The first case of HMPV virus has been found in India. In such a situation, stock market investors are beginning to fear whether this virus will also sink the market like the Corona era. The way the Indian stock market fell today after the news of the first case of HMPV virus, has increased the concern of investors. Now many people will have this question in their mind that what should be done in such a situation so that their money does not go waste. Come, let us tell you three such things which will save you from losing your money.
Look at weak earnings growth
If you are planning to make a big investment in the stock market, then you should definitely take a look at the weak earnings growth. Actually, the earnings growth of companies seems weak in this financial year. It is estimated that in this quarter it may be limited to only 5 percent. Before this, even in the second quarter, the results of most of the companies were not very good. Apart from this, if the outbreak of HMPV increases then it will also affect the stock market.
There is pressure for high valuation
If earnings growth remains weak then the valuation situation will also deteriorate. Due to earnings growth in the last 4 years, share prices have been skyrocketing in the market. In such a situation, when the earnings growth will be weak in the coming time, it will also affect the share price. Recently a Bloomberg report came out, in which it was stated that the P/E multiple of 273 stocks out of NSE 500 is above 25. Now in such a situation two situations can happen. If the quarterly results are good then there may be a rise in the shares, but if the results are bad then there may be a further decline in the shares.
Foreign investors are leaving the market
According to a report by Moneycontrol, the share of foreign investors in the Indian stock market was 20.95 percent in March 2021. Today it has come down to 16.1 percent. Apart from this, the arrival of HMPV in India has also worried the foreign investors. If the outbreak of this virus increases further in the coming time, then it would not be wrong to say that the market may fall further.
However, experts believe that HMPV is not as dangerous as Corona and the possibility of the situation worsening is very less. Therefore, if you are an investor then remain in a wait and watch situation at this time. Avoid making big investments.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
Also read: HMPV or Corona? The first case of which virus caused the stock market to fall the most
