Stocks are something which comes with high risk. Before investing in stocks, people should always take care of the risk factor, which is there. Stocks can give you high profit and also can give you huge losses which can be exhausting sometimes. Before investing in any stock, everyone should read the market properly and invest only in the stocks, which has higher chances of profit.
Even with all these precautionary measures, stocks are very unpredictable. Even the most expérience stocks investors sometimes face huge losses in the market. Recently when the covid-19 pandemic arrived in different countries, stocks got affected severely. Every stock had faced loss due to the pandemic. The investor’s also had faced huge loss when the pandemic arrived, and the stock market crashed. The market is recovering, but some stocks are still facing the loss.
The economy of the entire country is low, and that is affecting the stock market. One such stock which is facing huge loss is Reliance Industries LTD. It is on its lowest right now in terms of its past 3 months. The oil demand has plummeted in the market. But The sales of jio and Reliance Retail franchise such as Reliance Fresh has increased. So the people should hold the stocks for a while as there is a chance for Reliance Industries LTD to increase in stocks in the future.
Reason for the reduction in stock prices:
The reason for or this continuous decrease in stock prices of Reliance Industries Limited is the low demand for crude oil in the market. Crude oil and petrol always play a major role in controlling the economy of both the country and the stock market. Due to this long duration of lockdown, the demand for Petroleum has gone down very rapidly.
The industries were closed, so the demand for crude oil in for industrial purposes was not much. There was no traffic on roads due to strict restrictions about transportation during the period of lockdown that made the demand for Petroleum go down even further. The stocks of Reliance Industries Limited is crashing down, but the strokes brokers are telling the investors to hold their stocks as there are chances for a profit in future.
The stocks of Reliance Industries Limited has gone down about 5 to 6% on Monday. But the stocks of jio and Reliance Retail such as Reliance Smart is still making a profit for the client. In the period of lockdown, jio has made a huge profit due to high demand. Now that the Reliance Industries Limited is launching jio fibres, the chances for more profit is really high. So the investor should not get disappointed by this reduction in stocks and hold their stocks for a while and wait for a profit in future. Now the world is getting back towards normalcy. People are getting back to work, and industries are getting reopened. This will affect the market, and demand for crude will again go up.
To find the effects of COVID-19 on mental health, read my article about Seasonal Affective Disorder and depression.