4 Sectors - Less affected by COVID19

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          The noval corona virus has spread to 187 countries. It has slowdown the economic activity and created a fear of recession in the world. It has impacted most of the sectors by disrupting demand - supply chain, lock-down and production cut. Under such circumstances, 4 sectors that are less affected are: 

1. TELECOM : With the rising number of cases of corona virus in India, lock-down is increase. Due to lock-down, people are spending more time at home for work and leisure and using higher amount of network data. As a result, telecom companies has benefited from increasing number of subscriber and data services. Along with this, tariff hike decision taken in December 2019 has also provided good outcome for them.

Telecom Companies which can be consider to buy: 
  • Reliance Industries Limited (RIL) - Jio network 
  • Bharti Airtel Limited - Airtel network

2. FAST MOVING CONSUMER GOODS : The use of household and personal care products are going to witness steady growth even in the lock-down. Recently, e-commerce platform have seen rise in essential products sales which will benefit FMCG companies. Although overall sales will slowly witness slight decline in coming month but usage of essential products and health care products will increase due to fear of COVID19.

FMCG companies which can be consider to buy: 
  • Hindustan Unilever limited (HUL) - 12% market share in India
  • ITC limited - 14% market share in India

3. INSURANCE : The fear of corona virus is changing psychology of people about their health. Since the private sector companies are allowed to treat COVID19 patients, insurers have been getting their health insurance claim. As a result, demand of term and health insurance policies are increasing. On other hand, motor segment insurance is decreasing. Online health insurance sales has rise more than 30% since COVID19 treatment is included in the policies.

Life insurance companies which can be consider to buy:
  • HDFC Life 
  • SBI Life Insurance Company Limited

4. HEALTHCARE : The corona virus outbreak had disrupted supply chain of pharma company and rises fear of drug shortage. But the existing inventory of pharma company overcome the impact of COVID19. As a number of cases were rising, government issued guideline to private labs about COVID19 testing and pricing of test which in turn benefited healthcare companies. This pandemic opens up lot of opportunities for this sector. Need of essential drugs is increasing.

Hospital and healthcare service companies which can be considered to buy:
  • Dr Lal PathLabs - Diagnostic labs
  • Dr Reddy's Lab - Diversified player
  • Divis Lab - API manufacturer

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