As we are seeing the increase in Covid cases in India, we are already seeing the 2nd wave of Covid infections. Last time when corona cases were increasing we saw a huge fall in Nifty 50 upto 40%. It was greatest fall in Sensex and Nifty 50 from the year 2008.
In 2020 stock market crash we saw many companies achieving there 52 weeks high and those who have bought at the time of market crash in 2020 are seeing there portfolios up by more than 100%. So no one wants to miss the chance in market crash of 2021.
Here we have identified some stocks that might rise in 2021 due to the 2nd wave of Covid infections.
2nd wave Covid 19 Stocks to buy in India 2021
As virus made comeback in 2021 companies producing oxygen, medical equipments, Santizers, Covid vaccine drug makers, IT indusrty and some other fields may benefit from this and we can see rise in these sectors. List is of 8 Covid 19 Stocks to buy in India 2021.
Remedesivir producing company Cipla is looking attractive in this situation as there is a gap in demand and supply for the Remedesivir medicine and also they have market share of 50% in Remedesivir Production. To overcome the shortage of medicine they have doubled the producion of Remedesivir.
Galaxy Surfactants Ltd.
Last time when covid crash took place in 2020 we saw that FMCG stocks got some boosts due to lockdown. And Galaxy Surfactants supplies raw materials to well known FMCG companies like Unilever, P&G, Henkel, Colgate-Palmolive not only in India but also in US.
Dr Reddy’s Labratories
Sputnik V covid vaccine authorization will provide great earnings for this company. As per reports the incremental earnings through the covid portfolio maybe upto Rs. 200/share. Also they are outperforming there domestic growth with good ROE. As Indian need to boost Covid vaccine programs this vaccine can be used in India and world wide which will boost EPS (Earning per share) for the company.
Due to shortage of medical Oxygen cylinders, Linde India Ltd. has good opportunity to boost there ROE as they have 15% – 20% market share in medical engineering services. They produce medical oxygen which is used for Covid patients and also other medical gases. In short term we can see the spike on charts of Linde India. Here is the list of other oxygen producing listed companies in India.
As rural India is less effected from Covid infections we can expect record food grain procurement for Kharif crop than in 2020. Tractor industry is looking attractive and will continue to outperform larger automobile space according to the angel broking.
Cadila is one of the known company in pharma sector. It is one of the company who is producing Remedesiver and also doubled there production due to shortage of it. If in future government sets limit on use of Covishield vaccine for some reasons then Cadila’s covid vaccine, ZyCOV-D can get benefit from this.
As covid tests are made compulsory in some states so the demand for daigonistic centers have increased and Metropolis can get advantage of this. In one of the reports of Angel Broking they said,” We are very positive on Metropolis Healthcare due to the its long term plans, profitable margins and very good CAGR of 15%.”
They have signed volunteering agreement with Gilead for the production of Remedesiver medicine. This is great chance for company to boost there earnings and increase ROE as its quite low.