Quality is a theme to consider now, in a bear market and pandemic-caused panic. Since many small and weak companies may not recover from this churn, it makes sense to stick to big and quality companies. However, investors should not pay a very high price.
With intra-day swings of more than 10%, stock markets across the world are in turmoil. In a month, benchmark indices like Sensex and Nifty have lost more than 30% of their value. Markets are staring at economic losses triggered by shutdowns. “These shutdowns will result in cash crunch for several sectors in the first stage and will hit banks as
the Corona spread is no exception. This is one of the best places to hide during a crisis like this. The companies are still quoting at reasonable valuations. “The pharma sector is a good bet for the next 1-2 years. We are bullish on Cipla because of its domestic play, branded generic focus in US and reasonable valuations,” says Agarwal.