Profit making stocks in COVID-19 lockdown | Sector wise Top Shares

Government of India announces 20 lakh crore stimulus package for MSMEs, NBFCs and the power sector etc…

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Lockdown may be extended from 17th of May but in another form, government of India trying to lift the economy and announces 20 lakh crore stimulus package, this package may address some of the issues faced by MSMEs, NBFCs and the power sector, 20 lakh crore stimulus package may seem large at 10% of GDP of India, it is still smaller in size as compared to the stimulus packages announced by other countries like US, In such a situation your share market portfolio should be accordingly, however this article guides you to make a best portfolio of profit making stocks in COVID-19 lockdown.

The US government has so far announced fiscal package of USD 2.7 trillion (13% of GDP) which includes cash transfers while the US Fed has provided monetary stimulus of USD 2.5tn (11.5% of GDP) so far, as Both the US Government and the Fed have indicated that they are going to do more.

The Government has also highlighted that it would focus on the land and labor and there are expectations that there could be some announcement by the Government on land and labor reforms in the next tranche. While such structural changes will be positive for the economy in the longer run it would still not address the near term issue of supporting demand which
has collapsed as the economy has virtually come to a standstill due to the
lockdown.

The package announced by the Government may not be able to stimulate the economy up to the extent required and hence the markets disappointment by the measures announced by the government so far. While proactive measures by the Government of India is to shut the economy early has so far prevented a widespread Covid – 19 epidemic, there has been a recent acceleration in new cases which is coinciding with
gradual relaxation to the lockdown. Therefore there is a risk that there could be an outbreak in the future which is a serious matter for worry.

Post announcements so far investment strategy should be like that maintain your preference for sectors like agrochemicals, chemicals, FMCG, pharma, telecom and IT which have better revenue visibility. Also you need to maintain your strategy of avoiding sectors which are vulnerable to the slowdown like aviation, automobiles, hospitality, banks & NBFCs.

Below are the stocks in sectors which have better performance to make profit and helps to make better portfolio of profit making stocks in COVID-19 lockdown.

  • FMCG :
    • Britannia Ind.
    • Colgate-Palmolive
    • Hindustan Unilever
    • Nestle India
    • P& G Hygiene
  • Other Consumer Goods :
    • Avenue Supermarts
    • Bata India
    • Hawkins Cookers
  • Chemicals/Agro Chemica :
    • Aarti Industries
    • Dhanuka Agritech
    • Galaxy Surfacants
    • PI Industries
  • IT :
    • Infosys
    • L&T Infotech
  • Pharma & Healthcare :
    • Alkem
    • IPCA Labs.
  • Telecom/ Others :
    • Bharti Airtel
    • Reliance Industries

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