Covid -19 as we all know has bought virtually everything to a standstill and the capital markets are no exception. There has been a sharp fall in the benchmark indices and the stocks have corrected to mouth watering levels. The valuations that the markets are offering today will not be available perhaps in our lifetime and this is where the confusion begins.

If you buy at these levels given the uncertainties if conditions worsen one more round of selling cannot be ruled out and erosion of capital is inevitable which will be unfortunate for the long-term investor. If you don’t buy and the market surges the left out feeling will keep lurking and this is what I call “THE CLASSIC DILEMMA

Taking into account the prevailing dilemma one also cannot be oblivious of the fact that equity as an asset class is more lucrative, less risk prone at current levels. One has to take a call and if it is to invest it has to be in a staggered manner and in sectors which are likely to be in less or no pain that this pandemic will inflict.

Sectors to invest:
1. PHARMA
2. FMCG
3. METALS(SELECT)
4. SPECIALITY CHEMICALS
5. TELECOM

Sectors to Avoid
1. Banks
2. NBFC’S
3. AMC’S
4. INSURANCE
5. AVIATION
6. TRAVEL TOURISM & HOSPITALITY