Stocks To Invest In During Covid-19 Crash

A Digital Blogger | | Share Market | 1 Comment

Although the market is facing the worst changes ever, at the same time the downfall in stock price brings with it the opportunity for investors and beginners to step into the trading world and to invest in some of the worthy stocks.

Till yet many stock market crash had hit the market. Sometimes, it took years and sometimes a few months to recover. But this time, the world is witnessing something new.

It is the first time ever, that the Stock market crash India happened because of the hit of an invisible creature, the Corona Virus.

In just a few months, the virus has entered almost every country of the world, not only infecting the physical health but also the financial health of the world’s economy.

Almost one-third of the global market has been shaved off after the COVID-19 makes its way into the global market.

It rapid expansion has brought the economic activity to a near halt resulting in a complete beat down for global stock markets and significant loss of investors.

Its effect can be seen in some of the leading stocks of the world like Apple, Microsoft, Mastercard, Tesla, Nvidia, and Paycom Software.

Along with this, there is a slowdown in domestic consumption that further leads to the failure of large financial institutions like IL&FS and DHFL.

In such a crash, investors are worried and panicking as no one has an idea of how long will such conditions prevail.

Along with this, many other questions hit their head.

Many investors are thinking of exiting the market with the thought that the market is more likely to drop further and expect the extreme volatility of the stock market.

In all such worst situations, here we are with the top-notch information of the stocks that still will help you to build your wealth.

Also, read Stock Market Timings in India

Bringing the ray of positive hope and the stocks that can offer a good return even in such circumstances here we are with some stocks example.

Dive in!

Good to Choose Nifty BeES or Nifty FUTURES

Analyzing the current market scenario, it is highly recommended for investors to choose Nifty Bees or Nifty Futures for investment.

There is a high probability of earning good returns on investment on them.

1. Invest in stocks Impacted by Crude Oil

The crude oil price has fallen down the cliff and reached $35 a barrel from $68.

This fall in the price of crude oil is due to two major reasons:

The outbreak of coronavirus pandemic
The price war between Saudi Arabia and Russia led to the catastrophic effect.

This creates the biggest opportunity for the investors who can now look forward to investing in stocks like rubber, oil marketing companies (OMCs) and paint industries which are impacted by the fallen price of crude oil.

Apart from these, other stocks more likely to be impacted by the falling price of crude oil are:

Maruti Suzuki India
Bajaj Auto
HPCL
IOC
Asian Paints

For investors, investing smartly in these stocks can expect a higher return and benefits in the future.

2. Invest On Worthy Stocks During Corona Virus Crash

The downfall in the stock market is attracting many investors, especially the new one.

But at the same time, the biggest challenge that upfront them is to identify the right and worthy stocks to invest in.

Although there is many companies’ stock with good historical records, seeing the current situation it is difficult to predict the return potential from those companies.

Apart from the crude oil-based stocks and companies discussed above, there are others in the list like Private Banking, Telecom, NBFC & FMCG that would recover faster.

3. Invest in Commodity like Gold

In all the prevailing conditions of downfall, when the price of almost every other commodity is going down, the gold is going up because of its demand.

The falling price of the rupee will add to the impact of a gold rally on the Indian investors as it will bring down the portfolio volatility.

As per the expert recommendation, there should be a 5-10% allocation of gold in an individual’s portfolio.

Thus bringing great opportunity for investors and for beginners to invest in gold through Gold ETF or Gold Bonds.

Doing all the potential investments cautiously and smartly will offer you high returns and profit with time.

4. Start Investing in Mid and Large Caps

Investment of funds can never go wrong if done smartly.

At the time, when the Corona Virus hits the stock market, many investors are willing to invest a good amount due to the fall in share prices.

No wonder the SENSEX is falling at an accelerated rate and thus there are high chances of getting good returns in the future.

Investors looking for the best stocks for long term investment can opt for investing in the mid-caps.

Also, many experts are advising to stick to the large caps as it has invested to more than 20% thus offering better safety. Also, there are the least chances of fall in the large caps.

For mid-cap investment choose the companies having low debt which can generate free cash flows.

Some new investors can get into the investment world through mutual funds.

5. Let the Patience Rule in the Prevailing Condition of Corona Virus Crash

COVID-19 has affected almost every other nation around the globe and in such a case, it is difficult to predict that until when the stock market remains affected.

If you are an investor and looking up when the price of your share will go up, it is good to follow the day to day data.

For the investors who are looking ahead to make their way back to the stock market, it is good for them to move gradually.

Although that does not always go right in the stock market, seeing the current situation, it may prove to be fruitful for many.

No wonder, the impressive prices of stocks are attracting them and influencing them to invest more, but it is always good to take one step at a time.

Get into the stock market gradually, as you never know where the uptrend will take you. It is therefore good not to put too much money at risk.

The same concept applies to the IPO as well.

So the best way to invest in the stock market during the COVID-19 Crash is to stay patient in the current downtrend.

Instead of rushing start focusing on the stock charts to grab information on the market index and leading stocks. This will help you to discover the right opportunity and to raise your funds with time.

Bottom Line

For investors, who had invested a lot in the share market, it is high time to stay calm and to think of the ways how to protect your portfolio and the strategies of getting into the stock market gradually.

For beginners and other active investors, the highly impressive prices of the stocks are attracting them.

But whatever amount one is willing to invest, it is good to consider the time at which you most likely expect the return and plan the investment strategically.

The stocks discussed above are most probably would offer you good returns.

With the downtrend, many investors might invest without following the right guidelines.

Entering the stock market and making an investment when prices of potential stocks go down is good but at the same time, it does not mean to lure into buying everything that comes your way.

At this critical time, it is very important to be selective in picking the stock.

As per the expert advice, it is fruitful to go for the value investment.

Along with this do not lose sight of your patience or of asset allocation and do not diversify your stocks as it keeps you away from gaining much at the time the market gets to recover.

Stay Safe! Invest Smartly!

If you are a beginner and looking ahead to grab the opportunity, start now by opening a demat account.