Amid Black Monday market crash, key sectors to invest in or stay away from—Anil Singhvi shares views

Black Monday Market Crash, Nifty 50, Sensex: Domestic equity benchmarks slumped up to 4.5 per cent within the first hour of trade on Monday amid a global sell-off fuelled by uncertainties around the trade war and its impact on nascent growth and interest rates. The Sensex plunged as much as 3,236.7 points, or 4.3 per cent, to 72,128.2 while the Nifty50 slumped to as low as 21,874.7, sliding 1,029.8 points, or 4.5 per cent, below its previous close.

Those levels were still better than what the pre-market indicated earlier in the day. During the pre-market session, the Sensex and Nifty50 gauges nosedived as much as 3,939.7 points, or 5.2 per cent, to 71,425 and 1,160.8 points, or 5.1 per cent, to 21,743.7.

Investors Stare at Losses of Rs 19 Lakh Crore

Add Zee Business as a Preferred Source

At 10:45 am, the Sensex was trading 2,748.2 points, or 3.7 per cent, lower for the day at 72,616.5. With that, investors were staring at wealth erosion to the tune of Rs 19 lakh crore as the market capitalisation (mcap) of BSE-listed businesses stood at Rs 384.33 lakh crore in stark contrast to Rs 403.35 lakh crore at the end of Friday’s trade, according to provisional exchange data.

Global Market Crash | How Dow Jones, Asian gauges fared

Dalal Street still fared better than global benchmarks. In the early hours, MSCI’s broadest index of Asia Pacific plummeted as much as 7.8 per cent in intraday trade, while Japan’s Nikkei 225 plunged 8.8 per cent.

Dow Jones Industrial Average (DJIA) futures, an early indicator of the American blue-chip index, fell as much as 4.7 per cent, suggesting a steep gap-down opening on Wall Street on Monday. On Friday, the index lost 2,231.1 points, or 5.5 per cent.

Black Monday Across Markets | Amidst Dalal Street Market Crash, Which Sectors are in Spotlight?

According to Zee Business Managing Editor Anil Singhvi, market participants should avoid businesses having international operations, with IT, auto, auto ancillary, metal and chemical spaces being under pressure. On the other hand, the market guru suggests focusing on companies benefitting from falling crude oil prices. These companies are less risky at the current juncture, he adds.

He suggests investors utilise dips in sectors like oil marketing companies (OMCs), aviation and paint to make the most of lower crude oil prices.

He expects banking and NBFC stocks to lead recoveries on Dalal Street.

Here’s a quick summary of what market guru Anil Singhvi thinks

Spaces to Avoid

• IT
• Auto
• Auto parts
• Metal
• Chemicals

Spaces to Focus on

• OMCs
• Airlines
• Paintmakers Read more on how the market wizard views the market today

Catch key stock market updates here. For all other news, visit Zeebiz.com.