Buy The ‘Corona Virus’ Fear If You Want Mega Gains In Portfolio: Saurabh Mukherjea & Sanjiv Bhasin Recommend ‘Virus Proof’ Stocks

Corona Virus causes loss of Rs. 10.67 Lakh Crore in Dalal Street

Dalal Street bears a deserted look nowadays.

Only a few die-hard punters like me are loitering around aimlessly. Others have preferred to stay at home and hide under their beds.

This is sensible because the deadly Corona Virus caused the Sensex to plunge 1448 points and caused hapless investors to lose a mammoth fortune of Rs. 10.64 lakh crore.

On Friday itself, Dalal Street witnessed a loss of Rs 5 lakh crore.

#Sensex tanks 1,448 points amid global market rout

All told, investors in Indian markets have lost Rs 10.67 lakh crore (trillion) since the beginning of the week. On Friday alone, they lost over Rs 5 lakh crore.

Read more: https://t.co/eZdC6FLx4j pic.twitter.com/rF7Q0wuloi

— Hindustan Times (@htTweets) February 29, 2020

Punters on Wall Street also had a harrowing time because the Dow Jones plunged a colossal 1200 points amidst fears of economic uncertainty caused by the spread of the Corona Virus.

BREAKING: Dow Jones plummets nearly 1,200 points, more than 4%, as economic uncertainty over the spread of the novel coronavirus continued to rattle markets. https://t.co/VOBvb7omhE pic.twitter.com/FBlX3oNmgP

— ABC News (@ABC) February 27, 2020

BREAKING: Dow Jones Industrial Average records worst point drop ever on record, plummeting nearly 1,200 points https://t.co/T8yrpR8LHE pic.twitter.com/EaOeKgC34O

— CNBC Now (@CNBCnow) February 27, 2020

The losses caused on Wall Street are so massive that they are incalculable.

India is least effected by the Corona Virus

Saurabh Mukherjea was amongst the first of the luminaries to rush to Dalal Street to take stock of the situation and console investors.

He sought to delink India from the Corona Virus and its adverse impact.

“The level of interlinkages between our economy and the western economy is simply not as high as it is in United States,” he said.

“United States is completely at the heart of the western economy and therefore if the US stock market has corrected by 12 percent from its peak, something like a third of that is what we should expect the impact on the Indian stock market,” he added.

India will benefit from the Corona Virus crisis

Saurabh canvassed the brilliant argument that the fall-out of the deadly virus is that big companies will realize the folly of relying exclusively on one Country like China.

Instead, it makes sense for them to set up manufacturing facilities in other reliable Countries like India.

“Our economic impact will be modest and potentially, we are beneficiaries if the Fortune 500 companies do a strategic relocation of their supply chains, which I think is likely,” he opined.

Will Babies stop drinking milk because of the Corona Virus?

Saurabh rightly pointed out that the Corona Virus will not be a big game changer for companies focused on domestic consumption like Nestle, HDFC Bank, Asian Paints, Pidilite Industries, Britannia etc.

“Babies in India will not stop drinking milk and Indians will not stop painting their houses or stop using adhesives,” he stated in a soothing tone.

“Consistently buy great companies, well-run companies and you will make good money in India,” he added confidently.

Saurabh also advised that we should aggressively grab top-quality auto stocks like Bajaj Auto, TVS Motors etc.

He explained that the Auto sector has been pulverized in a miserable manner which is not justified given their fundamentals, governance and accounting quality.

Stewart & Mackertich has recommended a “strong buy” of Mahindra CIE, a growth oriented MNC available at reasonable valuations.

The stock is said to have an upside potential of 63%.

Strong Buy for 63% upside of Growth Oriented MNC at Reasonable Valuations. Most diversified India based auto MNC. Likely beneficiary of cyclical upturn in Indian auto sector from H2CY20. Good return ratios. Stock is highly undervalued https://t.co/uNrL2HjvYV pic.twitter.com/jplxRH6D5J

— RJ Stocks (@RakJhun) February 26, 2020

Buy the fear now and get ready for massive rally in April

Sanjiv Bhasin, the veteran investor, is a strong believer in “buying the fear“.

On earlier occasion, he had advised us to gird our loins and grab stocks when they were languishing.

The advice was very rewarding because we effortless made gains when the clouds of uncertainty lifted (see I Told You To Buy The Fear: Sanjiv Bhasin Predicts More Gains & Recommends New Multibagger Stocks).

We now have another golden opportunity thanks to the Corona Virus.

“Buy the Fear for sweetest April rebound,” Sanjiv Bhasin stated with utmost confidence in his tone.

He advised that we should buy fail-safe blue-chip large-cap stocks like Axis Bank, Federal Bank, DCB Bank, Titan, Eicher, M&M etc.

Overriding global fear seeing stocks get cheap… watch out for 2nd half of March—- could see sharpest rally globally & locally-Buy the Fear for sweetest April rebound ?

— sanjiv (@sanjiv_bhasin) February 27, 2020

Axis federal dcb banks & Titan & eicher M&m all very good 2nd half of the year plays

— sanjiv (@sanjiv_bhasin) February 27, 2020

What about OMC stocks?

Few are aware that crude oil prices are plunging like a stone.

The day is not far when crude will retail at a throwaway price of $40 per barrel.

India will be a big beneficiary of the crash in crude oil prices because we import massive quantities for our requirements.

OMC stocks like IOC, BPCL, HPCL, MRPL, etc will obviously prosper immensely.

$40 for crude in 2020 coming soon. Big positive for India! pic.twitter.com/NVTbDy6BNf

— Sunil Singhania (@SunilBSinghania) February 26, 2020

Complete panic. OMCs as a segment benefit the most with huge fall in crude price plus divestment trigger. But no one interested….upar ke bhav pe all technical calls will come…

— Varinder Bansal ?? (@varinder_bansal) February 28, 2020

What about Pharma & Hospital stocks?

Pharma & Hospital stocks are obvious big beneficiaries of the health scare created by the Corona Virus.

HDFC Sec has short-listed three of the best Pharma stocks to buy now.

Top Three Pharma Stocks To Buy Now. Stable business outlook for USA. Strong trends for domestic formulations business. R&D spends at 7.8% of sales. EBIDTA margins improved 30bps QoQ. Revenue/EPS CAGR of 9%/15% over FY20-22e expected https://t.co/7jiTb5mZK1 pic.twitter.com/qsAIToPbEX

— RJ Stocks (@RakJhun) February 27, 2020

Narayana Hrudayalaya, a hospital stock, has been recommended by Stewart & Mackertich on the logic that it is marching ahead profitably with an asset light business model, with focus on affordable healthcare and a steady ramp up of new hospitals.

It is also stated that there is a notable improvement in financial metrics with Operating leverage, efficiency and margin improvement, Free Cash Flow generation etc.

Cadila also appears to be a promising candidate because it has discovered an antidote for the deadly virus.

This will 1 co to watch from India amid #coronavirus

CADILA looks to expedite Covid-19 vaccine developmenthttps://t.co/JCi96aOpKA

— Varinder Bansal ?? (@varinder_bansal) February 28, 2020

AMC stocks are also a good buy

PL has issued a detailed research report in which it has short-listed the best AMC (Asset Management Company) stocks to buy now.

It is stated that AMC are the best long-term investible opportunity because of their multi year growth outlook.

AMCs enjoy high operating leverage and are fundamentally strong business with High ROE, ROCE and Free Cash generation.

It is also stated that investing in AMCs guarantees capital appreciation + offers Dividends due to high free cash generation, enhancing Total Returns for an investor.

Best AMC Stocks To Buy Now: Best long-term investible opportunity with multi year growth outlook. High operating leverage, fundamentally strong business with High ROE, ROCE & Free Cash generation.Investing in AMCs guarantees capital appreciation+Dividends https://t.co/GJQaRRK3ip pic.twitter.com/w2AMmOM8Dz

— RJ Stocks (@RakJhun) February 29, 2020