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00:00It seems like news of this 21 day nationwide lockdown was actually welcome news for investors. Why . So first I want to wish everyone healthy healthy times ahead . It's important that everyone stays healthy even during this crisis and which is why investors were happy about this lockdown that first get people healthy. Then then we can all think about how our businesses and wealth can be generated . But just to put this in perspective since the Spanish flu 100 hundred years ago technology has advanced and DAX strides this day. This virus DNA sequencing happened very quickly . We've already started human trials across the world. Before that testing after antidotes are so and governments are responding and giving economic stimulus whatever is needed. So but the brutal fact remains that a lot of the population will be affected by this. And anyways the Indian economy coming through the Indian context was reeling under a slowdown prior to even call it. So it is important to understand how businesses will be impacted by this dislocation that's happening in the markets . So so would you be chasing this rally right now. There's still so much uncertainty. India as some say could still be the next hotbed when it comes to two new infections. Is the question still now whether to fires it when to start buying . So let me put this in perspective. When we look at businesses . Let me categorize it into three types category A which are businesses that have high free cash flow low debt asset light. And those are the types of businesses where you have consumer staples and I.T. for instance. Then you have the type C businesses. Let me just jump for the last five which you have the asset heavy businesses which have high FICO scores and high debt. So all this in which our airlines and commodity businesses. So those businesses would be most impacted during this period red. And we have a shutdown. But the Tybee business model of businesses in between. So it's important to understand and this type of market where one should look at and which businesses will be able to weather the storm better and age is typically the A and B businesses. Right . Right. I just want to break some news now. You're seeing in the line your screen at the U.S. Senate has passed that record two trillion dollars stimulus bill in the Senate and the Congress. Further what time is it now. It's always close to midnight. There are so late hours there. They finally got this through and there was some earlier disputes. But that seems to be worked out now. And now this bill heads to the House for approval tomorrow and then we'll see how those things play out from there. But certainly it seems that the market has already priced this in. We're not seeing a huge movement when it comes to U.S. futures. They're slightly off the lows but U.S. futures still down some six tenths of a percent. The dollar is losing a little bit of steam but not a whole lot as well. So has a go . Well let's bring in back our guests Rocky Forsyte from the capital Rocky I mean we talk about the potential in the Indian market. We've seen an exit a record exit from the market amounting to about six billion dollars in the month of March alone. Have we seen the worst of it . So for this question we have to see where they files will find comfort. They are looking at their own home markets right now or with us trying to give a stimulus hopefully the ISE will find some easing of their liquidity pressures to run out of emerging markets . But never this. I mean we still need to assess and the impact that businesses will have because of this virus that has spread . I want to touch on the Indian rupee. IAG coming out to say that it sees the rupee at 80 per dollar. Your thoughts on that and the implications . So obviously with his money flowing out the rupee is going to be under pressure . But again these are all short term impacts. We need to keep an eye on the at least hopefully in a year's time. We should be in a much better place than we are right now. So when we look at businesses over the next one to three years we will get out of this. So whether drippy will settle . Finally it's hard to say at this point in time. But the other is pressure. And when we continue to see that pressure in the short term . Right. And Iraqi it seems like initially when we had that record meltdown earlier this week it happened so fast that even when it came to the analysts they were quick to kind of ratchet down their earnings downgrades. If you take a look at we have a chart for our viewers to see is that the result is when it comes to where the Sensex is right now and where that 12 month analyst's target price is. You see this huge huge gap between those targets and what the reality is right now. Is there a sense that we need to see further downgrades now or is there a sense of mispricing in the market . So when we have been doing the analysis over the last three or four weeks to understand what is the impact as this virus spreads obviously a 21 day lockdown on certain types of businesses means that there's no revenue for 21 days. Whether that's 21 days continues a bit longer. When will stop people start feeling better about going out and zooming goods and services that in fact one doesn't know that we can control this virus to a certain extent . So yes the modern and assist in our understanding of the business is that we look at our core competency area. We are expecting 10 to 25 percent earnings hit. Now the market though has fallen only 31 percent since its peak. So are we seeing the markets factoring in all of this in fact or not. This really depends on how the virus and how businesses react during this time .

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Alder Capital's Prasad Says India's Market Dislocations Will Continue

Rakhi Prasad, investment manager at Alder Capital, discusses the outlook for India's markets. She speaks with Yvonne Man and Haslinda Amin on "Bloomberg Markets: Asia." (Source: Bloomberg)