As regards earnings, March quarter of the financial year 2019-20 (Q4FY20) will be a washout. Even the first quarter of financial year 2020-21 (FY21) will remain subdued. However, from the second quarter onwards, some recovery could be seen. There will be a sector-specific impact where some sectors will take time to recover, and some do better in terms of earnings.
That said, pharma should continue to do well. Fast-moving consumer goods (FMCG), consumer durables, consumer discretionary, are expected to fare better. Further, private sector banks and information technology (IT) will also do well. With the resumption of Construction activities, Cement is also seen doing well.
On the other hand, real estate, infrastructure companies will be facing a tough time. Growth in the power sector will be flattish while the companies related to travel and tourism - hospitality, hotels, and aviation will continue to underperform.
Gaurang Shah is head- investment strategist at Geojit Financial Services. Views are personal
(As told to Swati Verma)