The performance of Capital Markets amidst COVID-19

COVID-19 has brought significant challenges to any field, let it be the education sector, the financial sector, and the most critical health sector. Nobody can deny the inevitable uncertainties and instability in any industry. But somehow, many of them found their way to overcome the potential recession, and this enabled many industries to face the challenges. The importance of Call to Action has been increased, especially in the Capital market, as the rapid changes are seen in the market.

The capital market of any country fights at the frontline of any Economic war. Any development that takes place in the economy has a direct impact on the Capital Markets, and therefore, it is essential to have that flexibility in order to absorb those impacts. This flexibility is provided by the Business continuity plan, which every company has in order to fight the adverse situations. The performance prior to the pandemic and the position of significant capital markets were good, which acted as a buffer for changes that took place in the last 7–8 months with the outbreak of COVID-19. The volatility is still there, as there are many sectors that are underperforming right now. The behavior of the capital market is a reflection of the performance of different sectors in the economy. The same has been discussed in a tabulated manner:

Agriculture & Food Processing

Food demands was low during the lockdown and this directly affected the income of the farmers and eventually affecting the Agriculture Sector.

E-Commerce

The global trend of lockdown due to the pandemic affected E-Commerce as it involves the home delivery system, avoided by everyone in lockdown.

Education

While the offline education system faced a major hit due to the lockdown, online education facilities boosted like nothing else.

Healthcare

Every country is facing the same issue and everyone is trying to effectively boost the sector to fight the pandemic in their own way.

According to the survey conducted by PWC regarding the concern of major capital generating companies about the effects of the Pandemic, the majority of them accepted the fact of financial insecurities that they have right now. This also includes the effects on the result of the operations, capital resources & liquidity. About 71% of the companies agreed to this problem. About 64% of the companies were concerned about the potential Global Recession. And about 41% of the people were concerned about the reduction in productivity due to the government imposed lockdown.

Even in the presence of volatility in the market, the level of the performance is more or less constant in the acceptable zone. All the markets are interlinked, so it is important that each of them performs in the required, acceptable area. Everybody has to make their contribution and do their part of the job in order to face the challenges ahead.