Sectors that will Perform after Covid 2.0

The second wave of Covid-19 is almost near to an end. Where the states had uplifted the lockdown with some major precautions, still in many states the number of cases are coming frequently though the number is in declining ratio.

Tough many states still have not lifted the lockdown rules and extended it till mid or end of June 2021, whereas in some states there are weekend restrictions and at some places, there are restrictions regarding the opening of necessity shops and so on.

The vaccination drive is also increased its pace and getting more & more candidates vaccinated as soon as possible. This show the sign of recovery.

The Economy had suffered huge losses since the rise of covid-19 cases across the nation the country suffers a lockdown in the first wave starting from March 24 2020 which leads to the first nationwide lockdown for the entire 21 days which later on continued till June 2020.

After that, the country started opening up stably and the economy was trying to get back on track again. Since then the economy is trying to recover, Last year we also posted negative GDP data which shows how badly our countries manufacturing & other business units got affected due to the pandemic.

Many startups, small businesses, & professionals lost their earning due to this. Even though some giant business firms confirmed they will pay some portion of salary to them but still that won’t be enough.

Some major steps were taken by big companies like Reliance, TATA sons as they said & agreed to pay to the person family those who lost earning members in this covid-19 cause. This is a great measure taken by these companies and help their family members.

The impact of the 2nd wave was still on and many businesses are still affected by it. The government is trying to overcome the situation and also provided some major monetary reliefs and incentive schemes which later on boost up the market and the economy will soon back on track.

Somehow the Indian government is mainly focusing on Atmanirbhar Bharat which usually wants our companies to produce more and more goods in the domestic market to avoid relying on the Import of it.

Somehow this condition will soon overcome and everything will begin to get normal sooner or later, along with that the vaccination drive is also getting faster which will also boost up to fight against this.

But after this 2nd wave of COVID-19, some sectors will perform well once the lockdown is been lifted totally from all the states and everyone will begin to live a normal & healthy life.

Last year IT and Pharma were the outperformers at the time of the pandemic, even after unlocking the nation the culture of work from home is in the run even the school and colleges are also not opened and all the sessions were conducted online via virtual lectures only.

Which shows the country is moving towards the digitization era. Everything is becoming easier with online mode and will remain continue till 2021-22.

Sectors that will perform once the unlocking is done in the country are as follows:-

1) Entertainment: Due to covid-19 and to avoid vast spreading among everyone the movie theatre was put on shut and will not be allowed to run due to adverse conditions. But now once everyone got vaccinated the sector will reopen again and will show some robust growth. Earlier this year many states started functioning with 50% capacity which actually turns into losses and later on it shut down again due to 2nd wave.

Stocks to watch: Inox Leisure & PVR

2) Hotel & Restaurants: Once the lockdown is done the hotel industry will again see some good hope, due to the current situation there were no tourist and other persons are visiting or traveling across the nation, which affected the industry and from last 2 years, it is running under losses.

Even the specialty food chains & restaurants are only providing parcel services or take away service.

Stocks to watch: Lemon Tree Hotels & Indian Hotels

3) Airlines: Once the lockdown is lifted the airline industry will again back into functioning, which shows some improvements & recovery in the economy.

Stocks to watch: Intergolbe Aviation & Spice Jet

4) Tours & Travels: This sector also witnessed a huge impact during the pandemic but now conditions are getting better, this segment will see some robust change, the major reason is the psychological impact on every individual who is in lockdown will plan out to move and visit some new places for a change.