Amid spiking Coronavirus cases, stock market experts are assuming the rise of specific sector. They are of the opinion that even when COVID-19 pandemic is on the rise (both in India and in overseas), sectors like pharma, banking and finance are expected to outperform stock market in the upcoming week. They advised investors to look at COVID-19 cases as the major trigger for the market next week.
Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Major trigger for the stock market is inside India and that trigger is number of COVID-19 cases getting reported in upcoming week.”
“Any further rise in COVID-19 cases will definitely fuel pharma sector as we witnessed last year but the way Government of India is pressing for vaccination, this time there might not be that kind of panic visible in the market that we saw in March to May last year”, he added.
Sumeet Bagadia, Executive Director at Choice Broking said, “Pharma sector is expected to give breakout in the coming week and stocks like Cipla, Cadila and Sun Pharma should be a good buy for both investors and traders in the market next week.” Bagadia expected 8-10 per cent rise in these pharma stocks in next fifteen days to one week time-horizon.
Bagadia said that banking & finance is another sector that will give better return in coming weeks. He said that Bank Nifty is in oversold condition and any upside move can be a major trigger for banking and financial stocks’ rally.
Asked about the major banking and financial stocks that one can think of buying this week Sumeet Bagadia of Choice Broking said, “In banking sector SBI, Bank of Baroda, Kotak Mahindra Bank and Axis Bank shares can be a good buy for both investors and traders while in the financial sector L&T Finance and HDFC Ltd. shares are looking poised for upside move.”