In which areas and in which stocks are coronavirus suspected? And as a result, where can investors find opportunities? What impact the outbreak of coronavirus might have on their particular pocket of the market. And which stocks look like good opportunities after the sell-off.
Here’s some sector where we can invest during coronavirus. Technology, media and telecommunications, financial services, health, and consumer, as well as the views of our industry.
There are a number of technology stocks here where damage from coronavirus outbreaks can be limited. Some of these stocks are not rated today. Some stock that actually benefits from viruses but is expensive.
There is little risk in China from the point of view of generally direct demand for software. After a four-month run, software stocks were quite expensive. So the reset is actually a good opportunity to buy great companies.
Media and Telecommunications
The media and entertainment industry in India is on a high growth trajectory and this trend is expect to continue in the future.
Revenue of financial exchange and financial data companies should be relatively immune. High market volatility will boost trading volume, and market data is an essential purchase for many financial services companies. However, we believe that these companies are overvalue.
We estimate that other financial industries should have above-average sensitivity to the secondary effects of coronavirus. Asset- and wealth-management companies whose revenue depends on customer asset levels will take a hit along with the stock market crash. Long-term interest rates (such as the 10-year Treasury) and short-term interest rates negatively affect interest-rate-sensitive names such as banks. An economically shaken or recession will yield lower debt growth, higher debt charges, and lower investment banking revenue. The effect on insurers is also potentially negative. As their investment income is low and abnormal liabilities may be associated with health issues in the population and health disruption.
The fall came even as India Ratings said the credit outlook for Indian pharma companies remains positive in the near-term despite the industry’s. Chinese active pharmaceutical ingredients and intermediates.
Data from the All India Chemists and Druggists Association showed the domestic pharma industry grew 12 percent. In February compared with 7 per cent in the previous month.
The healthcare index dropped 8.3 per cent. While the Sensex retreated 8.2 per cent after India imposed curbs on international arrivals by suspending most visas until April 15. The US banned travel from mainland European countries in an attempt to halt the spread of the coronavirus.