Given below is a list of sectors that are likely to flourish post the COVID-19 pandemic-
1. Ecommerce, Digital Tools and related sectors-
When the restrictions imposed as a result of the global lockdown were lifted by the Indian Government and e-commerce businesses were given the green light to recommence operations, business started booming for these companies. People could not freely move out of their homes, resulting in a shift from offline purchasing trends to online purchasing trends.
E-commerce has since been thriving, and companies like Amazon
have fared extremely well during the lockdown. As a result, the shares of E-commerce companies have seen steady growth, and many stock market gurus recommend E-commerce based stocks for long term prospects. Even delivery based services are making the grade nowadays.
Another sector that has been flourishing is the Digital tools and applications sector under which companies like Zoom Video Communications Inc. and Slack Technologies, Inc. operate. Zoom, Slack, Asana, and Clockify have played a pivotal role in running the whole work-from-home show, and any investments made in this space will be undoubtedly profitable.
2. Medical and Healthcare sector-
The pandemic has no doubt affected people’s health, and this impact has led to countless number of people turning to the medical sector based companies. The demand for products such as medicines and medical instruments and peripherals such as oximeters, Personal Protective Equipment (PPE) kits, and masks are increasing by the day. These companies also cater to the rising demand for essential supplies such as hand sanitizers, handwash, and disinfectant cleaners. The Healthcare sector is also booming as people are becoming increasingly conscious of their health, habits, hygiene, and lifestyle, and this again is a lucrative prospect for many. The ever-growing demand conveys the impression of the bright future that lies ahead for these companies, and there is no better time to take advantage of the prospects of this sector.
3. Banking, NBFCs, and other financial services sector-
The lockdown has led to a lot of people losing their jobs, and the ones who have not been laid off would have gone through a temporary furlough/pay-cut period, leading to a lot of illiquidity and very little cashflows. Banks and NBFCs play a role of paramount significance to people during times like these, providing loans and other financial services to people in need. However, only some would be able to get secured loans from Banks and NBFCs upon provision of security and the rest would have to turn to other financial institutions that provide loans at a much higher rate without the requirement of collateral.
The financial services sector is an essential part of everyone’s life, proving to be a prospective sector for investments.
4. FMCG Sector-
One of the most prosperous sectors during the lockdown, the FMCG sector has broken several milestones due to the increase in the consumption growth trends. Retail and FMCG chains have benefited from the ‘panic buying trends’ of consumers- due to the fear of shortage/exhaustion of essentials as a result of the lockdown. This space has also been eventful for many FMCG companies manufacturing ‘healthy and immunity-boosting food’, capitalizing on the health consciousness of people as a result of the pandemic. The lockdown restrictions levied on hotels and restaurants are making ready-to-eat food items increasingly popular among the masses. Companies are also continuously trying to expand their range of products to meet the soaring demand of end-users.
This makes the FMCG sector a popular option for many investors.