Watch the episode of 3 Point Analysis with Sakshi Batra to know which sectors and companies investors should avoid amid the COVID-19 crisis
The novel coronavirus, or COVID-19, pandemic coincides with the peak demand season, i.e. January to June, and a nationwide lockdown during such a period is expected to have a severe impact. Disruptions caused by COVID-19 lockdown are hitting companies' earnings hard.
For the cement sector, the leverage ratio is elevated owing to the capital intensive nature of the business. Occupancies and tariffs at major hotel chains are already seeing a steep decline in earnings.
In the case of another defensive sector, pharma, the downside in earnings is expected to be low.
The Indian automobile sector had already been struggling on the back of multiple macroeconomic challenges for the past two years. Now, with COVID-19 breakout, everything has come to grinding halt from production to sales.
So, which sectors and companies should ideally be avoided amid the COVID-19 pandemic? Watch the episode of 3 Point Analysis with Sakshi Batra to know more.