ETMarkets’ Investors Guide: Stocks to play the Covid vaccine theme

ETMarkets’ Investors Guide: Stocks to play the Covid vaccine theme


Hi there, this is ETMarkets’ Investors Guide, a show about asset classes, market trends and investment opportunities. This is Atul P.M.The month so far has remained in favour of the bulls. Benchmark equity indices Sensex and Nifty have scaled fresh record highs amid robust inflows from foreign institutional investors and progress on Covid-19 vaccine development.

On a month-to-date basis, the 30-share Sensex has gained over 11 per cent to around 44,150 till November 27, while the 50-share Nifty has rallied by a similar measure to 12,969.

NSDL data showed inflows from foreign portfolio investors to domestic equities have stood at over Rs 60,000 crore so far this month and at this pace, they have already breached August record of Rs 47,080 crore inflows.

Going ahead, will these overseas inflows increase and which themes may benefit the most from vaccine development? We caught up with Andrew Holland, Chief Executive Officer, Avendus Capital Alternate Strategies, to seek answers to these questions and more.

Welcome to the show, Mr Holland

1) Domestic equities are at a record high. Where is this market headed?

2) What sort of stocks or themes would you suggest at this juncture?

3) In a low interest rate environment, can we expect foreign inflows to emerging markets like India to rise going ahead?

4) Do you think the broader market will take a lead in 2021 after years of underperformance?

5) Which can be the best plays on vaccine development?

6) As you said, India is a stock pickers’ market. What kind of stocks would you suggest for long-term investors, those who have a horizon of, say, 10 years?

Thank you Mr. Holland, that was indeed a very insightful conversation.

That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can check out our regular podcasts on the equity market twice every week day.

Credit: Stocks-Markets-Economic Times

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