EQUITY HOTSPOT TO BUY - Ajay Singh Chauhan

Correction into market

On 23rd of March when nifty break all records and touched lowest level of 7610. It was very sharp correction one can look into chart easily. It was of something similar to 2008 chart, Steep fall. Within short span of time market have seen correction of 40%. Situation is worse in stock, when we look at them specially. Stocks are down 30-40-50 or even 60-70%.In my life I have never seen so much of correction.

When we talk about various industries due to lockdown everything is stand still. All manufacturing industries are shut. Aviation sector is crumble down totally due to complete restriction on all type of operation. More over various aviation company now even not paying back amount of cancelled tickets.

Logistic company have also affected due to this zero movement. Across India there were about 350000 truck stuck over boundary of state border. This is count of only struck of Register Company, there are many unregistered company too.

Yesterday Modi ji announced lockdown 2.0 which will extend up to May 03. Big companies will able to manage this tough time. But various SME and MSME and unorganised sector have more pain to bear after lockdown will over. This pain might reduce if government announce stimuli package of these sector.

So pain of COVID-19 and lockdown is everywhere but markets never disappoint you. Out of blue still there are sector will make you money. There are two sector to be specific which heal your pain of correction .These sector is one sector i.e.  Pharmaceuticals companies. You might be thinking when everything is going down how this sector will perform. We will discuss all this is detail.

PHARMA

  • Recently after discloser of china, that Hydroxychloroquine (HCQ) can be used for treating patents of COVID-19 all over the world demand of HCQ have rose. India is leading producer of HCQ. Overall Indian companies have very good image in international market and Indian medicine is being redly exported in various countries.
  • After export ban on HCQ India have now started to do export medicine on humanitarian ground. Various other countries are looking toward India to provide medicine.
  • Companies like Ipka lab, Zydus Cadila, Wallance pharma, these companies are the major producer of HCQ. In near future these companies result will be exceptional considering to various other sectors.
  • Various other pharma stocks are in news for various reasons. But I clear next 6 month them of market will we pharma. GSK Pharma and Sanofi India have join their hand and working on COVID-19 vaccine. Within few month these companies will do test of these vaccine on Humans.
  • Nectar Life is about start its API (Active Pharmaceutical Ingredients) production in few days .API is raw material for HCQ and various other drugs.
  • Biocon has launched another medicine for cancer patents. There is another company Aztrazeneca which will test cancer medicine on COVID-19 patients.
  • Ajanta pharma and Sun pharma have got clearance from U.S FDA for medice like Metformin Hydrochloride and Dapaglifiozin.  One start accumulating these pharma share at every fall. In six month or in one year return will be huge. These stocks have great upside from these levels also.

The above article is written by Navin Kumar

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