Indian markets woke up to negative cues with the Asian markets at a two-month low and the Taiwanese stocks trading 8 percent lower over fears of a coronavirus surge.
Investors are worried about the rise in COVID cases that could restrict business activity in Taiwan, which is the world’s semiconductor hub.
The Taiwanese market has given substantially higher returns in the range of 65-70 percent against 42 percent for the US, 20 percent for the UK and 40 percent for European markets.
Hence, the COVID-19 alert might have been a knee-jerk reaction and a profit-booking opportunity.
Digital is the “new normal” and requires all sorts of smartphones, laptops and desktops that has created a new demand in the space.
The shortage of semiconductors is a bigger challenge.