Revamp your investment strategy, for utmost returns: Expert View

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The pandemic has brought about a standstill in the economy. All the sectors have been greatly affected by the continuous lockdowns for over two months, new norms of social distancing, and interactions. COVID crisis has brought immense change in the lifestyle of people, their spending capacity, and buying behavior. People are more speculative than ever, as the ambiguity proliferates. 

Sony Mathews, the Senior Market Strategist at Geojit Financial Services, says that the BSE Sensex and Nifty50 have been witnessing some turbulence since the COVID19 spread. He has advised investors to adhere to caution and adopt a staggered investment approach. Since all sectors in India are prone to massive COVID19 influence, certain sectors may be less affected. Consider the various investment avenues, and mobilize resources wisely.

Equity on a low

The actual losses and damages cannot be completely evaluated at this point as the COVID has not been erased off completely. Equity markets and corporate earnings have been deeply affected by the insecurity as the economic and commercial activities came to an abrupt halt for over two months due to subsequent lockdowns. The government along with the Reserve Bank of India (RBI) has announced several measures and stimulus packages hoping to revive the economy.

For that reason, investors must be speculative about investing in equities and should be stock specific in this sector. It is advisable to focus on quality stocks and select midcaps and invest cautiously.

Sectors that can rebound with minimal effort

The demand for Chinese commodities has always been high in India, but the advent of COVID has shattered that demand. The revival of Chinese markets seems to be a time-consuming task. The stimulus packages that were announced are aimed towards capturing this growing demand. 

Certain sectors such as the Agri sector, chemicals, consumption stocks, FMCGs, have immense latent to recover faster than other sectors. It is noted that the blue-chip private sector banks may do better than public sector banks. Insurance companies can also use this as an opportunity and build plans to penetrate deeper into Indian markets as people are more health-conscious than ever.

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