With active COVID-19 cases crossing the 5,000 mark, the Indian Medical Association (IMA) has urged people to continue following preventive measures, including wearing masks and maintaining hygiene. Meanwhile, the government has advised individuals feeling unwell to avoid crowded places as a precautionary step.
As COVID-19 cases see a renewed rise, certain sectors and stocks may come into focus due to potential shifts in consumer behaviour, healthcare demand, and government response. Investors may look closely at pharmaceutical companies, diagnostic labs, hospital chains, and Online Platforms.
Pharmaceuticals
This sector stands to gain from higher demand for COVID-related drugs, vaccines, and general immunity boosters. Companies with a strong pipeline in infectious diseases or respiratory treatments may see a pickup in sales and investor interest. Dr. Reddy’s Laboratories and Sun Pharma are well-positioned to benefit from increased demand for medicines.
Diagnostic Labs
With the possibility of more people opting for testing, especially in urban centres, diagnostic companies are expected to benefit from increased RT-PCR and other COVID-related test volumes, improving their revenue visibility. Metropolis Healthcare and Dr Lal PathLabs are likely to see growth from higher testing volumes.
Also read: 2 Stocks to buy now for an upside of up to 20%; Recommended by Trade Brains portal – June 6
Hospital Chains
Rising infections may lead to more hospital visits and admissions, boosting the occupancy rates of multi-speciality and private hospital chains. These companies could see improved operational performance and better margins in the short term. Apollo Hospitals and Narayana Hrudayalaya stand to gain from rising patient visits and admissions.
Online Platforms
A fresh wave of caution may drive more people toward digital services like teleconsultation, e-pharmacy, and online learning. E-commerce and food delivery platforms may also experience increased usage as people avoid crowded spaces. Policy Bazaar, Eternal, and Medplus could benefit from the growing shift to digital services.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
