Which are the best stocks to buy in the current COVID-19 situation?

Share market predictions are very difficult and even the best of the market analysts fail in this miserably and that is the reason why many people having experience of share market do not become millionaire in spite of having all opportunity to take advantage of the market. Anyway, the prediction is always a difficult thing but there are some intelligent observation which a person can make and then decide to make the investment accordingly.

Whenever there is a calamity or big turmoil in the world the share markets come down in response to the reduced economic activities and reduced purchasing power of the people. When jobs are cut and industries close down then the share market index has to come down and it can go to the rock bottom as technically at that time it is called so. So, many people believe that this is the perfect time for investment and once the situation improves the market would look up and then the investor can realise the profit from his investment. No one can tell as when the situation would improve. It could take more time also but that is immaterial in share market as the long time strategy is always preferred to make good capital gains in the select shares.

It is also very clear that the stocks of common consumer commodities and drugs would do good in such a situation and those are the preferred sector for the investment at the present juncture. Only caution is that if the present situation lingers and continuous for a longer time some companies might close down and the owners would declare them bankrupt and then would start afresh after a few years but in this process the investor's money goes into the drain as shares would lose their value and become just a piece of paper or a worthless entry in the demat share account in the Bank.

Generally from the pat experiences we can infer that the blue chip companies whose past record is glorious would do better once the present threat is over and it would be advisable to concentrate on them. I cannot name any particular company because of the obvious reasons but some top pharma companies, consumer goods company, IT companies etc deserve to be preferred in the present juncture. Another thing is do not invest in one single good company but try to distribute the kitty in at least 10-12 top companies as that would reduce the risk of losing money in case some of the companies disappear from the scene after the present virus disaster. Another alternative is to go for top mutual funds as they would also be investing in select shares as per their knowledge base and experience and would try to provide the best yield to its investors. In any case be prepared for a long time scenario and long time perspective and do not hope for a quick revival in the market though some of the short term market players would be yearning for that.

The market is down and almost all the shares going down. People are losing virtual money in this market due to this deadly virus Coronavirus. Selling shares at this moment is not advisable but some people can't withstand and try to sell some stocks.
This is the correct time for people to invest in the share market. But it is better if an individual thinks about the investment and wisely invest. It is very difficult to pinpoint a share which is good for investment. But a general analysis can be made.
Once the lockdown is removed people start normally and all the avenues will open. But financially there will be many problems and we may have to wait for some time to get normal. The government has to decide on the priorities and see that that area will improve.
Even during lock down the service sector has not completely stopped its works. Many are working from home. Once the world over the Corona problem gets settled more countries will look at the IT industries of India as the manpower is cheap here. So there will be a boost for that industry. I think one can think of purchase the shares of these IT companies which are coming down now and definitely they will improve after the coronavirus period.
No Country will think of going for war in the near future and at least they recover from the loss due to this breakdown. So there may not be high sanctions to defense and the industries which are dependent on these order may take some time to get to normal. So it is better to wait for some time to purchase defense related industries shares.
Pharmaceuticals and the food industry may do good. So it is better to think of purchasing shares of the industries which have come down now and they will increase in the coming time. But one should not expect immediate gains and may have tow ait a year or two.

In any given time, prediction of behaviour of shares is rather difficult. However, when the market is depressed due to global recession, or break out endemic such as COVID 19 etc, it would take considerable time to reverse the bearish phase. We are on the cross roads of such a volatile situation where we need to take some prudent steps based upon their past performances, their past dividend pay out and rapport of their promoters.
If we do a little exercise keeping in view of the spread of corona - virus impacting the health of shares, we still can manage our shares providing us handsome returns within a couple of years say three years from this time and onwards. You may concentrate on purchasing the following shares under the turbulent market condition and your yields would certainly be substantial if you remain invested for a minimum period of three years. You may have a look on the following shares-
1) ITC - If you think that the shares of ITC will provide you dismal performance since it is tobacco company and such a company can flourish only when profitability is being seen in almost all sectors providing the investors a bulk margin due to retention of such shares. As a result of overhaul growth of the economy, the share prices of ITC too will pick up. In fact, the surge of prices of ITC may be due to heavy support of customers addicted to tobacco consumption and hence the financial health of this company would remain promising.
2) IT Sector - It is the even green sector and once the market stabilises with initial obstacles, there will be plenty of projects within the hands of IT companies and such possession of projects, will strengthen the profitability of the companies. You may notice over saturation of many such companies which has affected its profitabilities and hence you may add some amount of shares in Datamatics Global, Tata Elxsi etc with the moderate investments in the initial phase and gradually it can be further stepped up depending upon your financial position.
3) Pharma Industries- Though the Pharma Industries are stagnant in terms of their financial performance, there are some newly added industries such as Caplin Laboratory, Sequent Scientific etc where you can rake in substantial profits. Caplin Laboratory has offered handsome dividend to their investors and if you see their track records for the last five years, you could see that share price has almost doubled within a short time of two years.
4) Godrej Agrovet - This company produces Animal - feeds, medicines related to animals and producing Palm Oils. This company has flaunted IPO last year and buying such IPO's of this company will provide you attractive returns within a couple of years.

At the present time of COVID 19, best shares came up from Pharma, Banking sector and automobile sectors.

Pharma stocks are
1.Torrent Pharma which is 4.29% on Bombay Stock Exchange in the recent days
2. ONGC, Tata Steel, ICICI Bank, Kotak Bank, TCS and L&T were among the top gainers in the recent time of COVID out breaking.
3.You can also have a look at Britannia, Bharat Infratel, Torrent Pharma, TVS Motors etc.These are top gainers in the recent time.
4. Parag Milk Foods gains almost 10%, and Piramal Enterprises shares raised over 5%

It is very difficult to pinpoint the particular companies as that requires a greater skill about the details of the financial conditions and working of a company as well as its future plans and projections. At this stage what can be suggested is to go for some of the reputed and top companies in sectors like pharma, FMCG, IT etc. Share market investing is always a risky propositions and that is why there sometimes handsome gains also. As well said - no risk no gain. One thing which many investors do is they would first choose a good company and then see its historical data. If today its shares are trading very low then it makes sense to buy them. Another thing is buying shares is generally an investment for a longer period and if one keeps that in mind then the investment can be done today as the most of the good shares are trading at lower levels.

If you are looking at the market to buy something, you are a trader and not an investor. Traders buy stocks. Investors buy companies. Stop being a trader and become an investor. Think of the companies you will want to be a part of if the country is locked down for ten years and the stock market is closed. Would you be comfortable buying penny stocks in such a scenario? Definitely not, I guess! Hence, only buy companies for good fundamentals. Do not go for too many. Buy good companies that have an unparalleled business and which have no or fewer market competitors.

You have to do that research yourself: no one can do that for you. [In fact, if I knew which would be the best company to buy, I would just go and buy that stock myself instead of advising people. ]

Let me give an example. Think of the adhesive industry. When do you think of adhesives, which brand do you think of as the market leader? I personally believe it is Favicol: as of now, there is no alternative to it in the Indian market. Every single wood furniture, every single carpenter makes use of it. Do you see any competitor of Favicol in the near future? I do not. Do you see wood furniture going out of fashion soon? I do not. Hence, the adhesive business is here to stay, and Pidilite Industries is a good buy, irrespective of what the price is telling you. Do not look at prices. Look at the value that the company offers. Think whether you are yourself a customer of that business and what kind of review you would write as a customer. If you think you would give the brand a five-star rating, it is always a good idea to go forward and buy that, irrespective of the market ups and downs. Because, when you are investing for the long haul, such dips and ups hardly matter. If you take out your spreadsheets, you will see that investing in dips to buy good companies and always timing the market right (although that is practically impossible) would hardly give you 5% extra than if you have never looked at the market prices and just went ahead to buy the companies you thought you would buy anyways. Why lose your sleep over just 5%?