The recent rise in the market has been attributed to FOMO, an acronym for “Fear of Missing Out”, a form of social anxiety that stems from the belief that one might miss out on an exciting or interesting event that may currently be happening elsewhere. As the market has reached sharp and steady highs in a V-shaped fashion in the last couple of months, due to this FOMO, many investors and traders have become concerned with the fact that they might have missed out on an opportunity to put their cash to work at appealing prices.
But this is not entirely correct. As per the current scenario, some sectors are still underperforming due to the lack of demand and since we all know that the greatest opportunities lie in sectors that have been ignored by the financial markets, we must definitely look at the investing opportunities that lie within them.
So, let us examine the sectoral indices before and after March 2020 (the Coronavirus pandemic)
Sectoral wise returns are as follows:-
As we see in the above data, there are still plenty of opportunities available in sectors such as Realty, Banks, Financial services, and Metals. Additionally, there are opportunities in Navratna and mini Navratana companies of the PSE sector as well
So, if you are an investor with FOMO right now, you can still grab a lot of investing opportunities even as Nifty touches a high of 11,340.
In the above table, Before Corona data includes the 52 week high and current high of the market (after the downfall in March). So, the sectors in red might turn into opportunities in the near term future.
Whether you are a trader or an investor, there are still abundant opportunities left in the equity markets. Some of the sectors where these opportunities lie are listed below -
► Realty sector
This sector has a direct contribution of 6% and an indirect contribution of around 20% in GDP. Also known as the backbone of any developing economy, the RBI governor has picked this sector as the oxygen required to revive the current economic condition.
► Banking and Financial sectors
These sectors are still under the cloud as there are concerns regarding a rise in NPAs in the upcoming quarters of FY21. But if you look at these sectors from a long term perspective, some of the best companies are still in good hands and you will be able to buy their stocks at a discount. This sector consists of 36.15% of the entire Nifty 50.
► Media sector
Due to the rising concerns regarding COVID-19 and the impact of the nationwide lockdown that has caused the permanent shutdown of cinema halls, the media sector has suffered huge losses. However, some of the best stocks of this sector are currently available at mouth-watering prices.