NEW DELHI: Rising Covid cases in China and the chances of new BF.7 Omicron sub-variant’s rapid spread in India have left a section of investors a worried lot. Domestic brokerage sees Covid to faint into a non-event in 2023 and believes that a mild spread of the infection won’t have a debilitating impact on stocks.
“Covid is less likely to surge in India given comprehensive vaccination coverage and early preparedness by the government,” Motilal said in a report. While presenting a two-scenario analysis of the impact of Covid, in case it hits India as well, the brokerage said if the spread is mild (80% probability), it will not have any negative impact on any sector.
However, if the Covid 4.0 spread is moderate to severe (20% probability), it will affect airlines, multiplexes, hotels and retail/QSRs.
On the other hand, Covid will have a positive impact on stocks of companies related to diagnostics, testing kits, hospitals and Covid medicine manufacturers.
Stocks that may get positively impacted from Covid according to the brokerage
Diagnostic: Metropolis,
, Thyrocare, and Krsnaa Diagnostic.
Hospitals: , , Shalby, Narayana Hrudayalay, Krishna Institute.
Pharma: Cipla, , Granules, Glenmark and Zydus Lifescience.
Moderate to high spread of Covid would be negative for these stocks
Travel and tourism:
, Easemytrip, , Lemon Tree.
Multiplex: PVR and
.
Retail: Titan, ABFRL, Trent and
.
QSR: Westlife Foodworld,
, , Restaurant Brand.
Top picks for 2023
Motilal has SBI, Axis Bank, L&T,
, , Bharat Forge, , Maruti, ITC, Titan, Indian Hotels, Westlife Foodworks, Infosys and Apollo Hospitals as among its top picks for the new year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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