A Pandemic Playbook: The Best Bets for Investors

Pandemic!

If it has taught us anything, it’s that the world can flip upside down faster than you can say, “social distancing.”

Remember the early days of COVID-19?

When toilet paper was a prized possession, hand sanitisers became liquid gold, and phrases like “quarantine” and “community spread” became as common as a “Hi!”

Amidst all the chaos, there was one thing that didn’t take a break—the stock market.

It panicked, dropped, and rebounded, reshaping portfolios in ways no one could’ve predicted.

Now, here we are with HMPV on the radar, and the market’s already behaving like it’s got a fever. Investors, should you really be worried? Or is this another opportunity in disguise?

Let’s dive into the pandemic playbook, if you will.

When the Market Takes a Hit: The Usual Suspects

First things first: Aviation and hospitality got the short end of the stick.

COVID-19 brought airlines to their knees.

Flights were grounded, employees were laid off, and airline stocks nosedived.

Hotels didn’t fare any better.

Let’s just say their occupancy rates were as empty as their lobbies. And guess what?

The same script played out again when the news of HMPV broke out.

Airlines like Interglobe Aviation and hotels like Indian Hotels Company stocks plunged up to 6.4%, sparking a déjà vu moment for traders.

But it’s not just aviation and hotels that feel the heat.

Tourism, which contributes a solid 7% to India’s GDP, also hits a roadblock.

During COVID’s second wave, restrictions severely impacted this sector just as it was beginning to recover.

Homestays, holiday homes, and motels all took a hit.

And then there’s the automobile sector.

In 2021, sales momentum went out the window, thanks to supply chain disruptions and dampened consumer sentiment.

Original equipment manufacturers even had to bring forward maintenance shutdowns.

Talk about a domino effect.

Not All Is Lost: Healthcare to the Rescue!

But pandemic isn’t all doom and gloom for everyone.

Enter the healthcare sector—the shining knight in scrubs.

During COVID, pharma stocks soared as medicines flew off the shelves.

Companies like Cipla and Sun Pharma didn’t just weather the storm; they thrived in it.

Glenmark? Up by a jaw-dropping 172%.

Apollo Hospitals saw its occupancy rate climb to 68%.

Diagnostics companies like Dr Lal PathLabs also joined the winner’s circle, bolstered by acquisitions and brand initiatives.

So, what’s the secret to picking the right stocks during a health scare?

How to Turn a Health Crisis into a Stock Market Win

For starters, keep your eyes glued to the news.

Early detection isn’t just for diseases; it’s for stocks, too.

When you spot a new virus making headlines, look for companies working on diagnostics, vaccines, or treatments.

Next, track regulatory announcements.

Approvals from bodies like the FDA or WHO can send stock prices soaring overnight. Remember how emergency use authorisations made headlines during COVID?

It’s like a fast-track approval that lets vaccines or treatments hit the market quickly during a health crisis—while still being closely monitored for safety.

That was the green light traders were waiting for.

And don’t forget to study R&D pipelines.

Companies with active research programmes are usually the first to pivot during outbreaks.

Take Abbott India, for example. Their focus on innovation has kept them ahead of the curve, with their market cap recently touching ₹40,886 crore.

Lastly, watch for unusual spikes in trading volumes. If you see a healthcare stock suddenly becoming the talk of the trading floor, chances are something big is brewing.

Now, let’s talk specifics.

Stocks like Apollo Hospitals, Fortis Healthcare, and Ajanta Pharma are already showing promise.

Apollo’s occupancy rates are climbing, Fortis’ diagnostic segment is expanding, and Ajanta Pharma’s focus on generics is paying off.

Meanwhile, Dr Lal Path Labs continues to grow its Swasthfit brand, contributing 25% of its revenue .

These are your pandemic warriors to watch when the market gets sick.

So, here we are.

Another health scare, another market shuffle.

If there’s one more thing pandemic has taught us, it’s this: chaos creates opportunities.

For every sector that falters, another finds its footing.

The trick is knowing where to look, when to act, and how to turn panic into profit.

Sources and References:

1. ECONOMICTIMES
2. EQUITYMASTER
3. BUSINESSSTANDARD
4. EQUITYMASTER
5. TRADEBRAINS