As covid-19 changes consumer behaviour and social norms, stock markets are shifting towards segments that are likely to be the least impacted.
One sector which is expected to lose the most is finance, which had led the consumption boom. But going ahead, business for the financial sector is uncertain.
The lockdown will affect its customer profile, and it will have to deal with rising delinquencies. Therefore, it is underperforming the market rally, starting 25 March. “It appears that the breadth of performance in financials could narrow considerably and be concentrated in the top two or three names.
We reduce our weight in the sector to neutral from plus 500 bps," said Morgan Stanley India. This refers to the allocation for finance stocks