Shares of healthcare, power, oil and gas companies least affected by demonetisation

Indian markets are having a roller coaster ride since the beginning of November when Prime Minister Narendra Modi announced demonetising 86% of total currency in circulation amounting to nearly Rs 14 lakh crore.

Where BSE Sensex and NSE Nifty were trading over 27,000- and 8,500-mark before the demonetisation announcement, are now hovering around 26,000- and 8,000 levels. 

In just two weeks of demonetisation process, the Sensex has lost nearly 6.62% of its share and that of Nifty about 5.64%. 

On November 19, Deutsche Bank stated that it has cut Sensex target by 8% to 25000 from its previous 27000-target. While Ambit Capital scrapped its current FY17 Sensex target of 29,500 and unveiled their FY18 target of 29,000.

At 11.14 am on Friday, the 30-stock index was trading at 26,093.33 above 233.16 points or 0.90% and 51-stock index was at 8052.25 up by 87 points or 1.09%.

Here is a sector-wise performance on BSE in these two weeks.

Healthcare is the least affected sector on BSE, followed by utilities, energy, power, oil and gas and telecom. 

Analysts at Ambit Capital believed that as pharma is need based sector the impact of demonetisation is low.

While power, utilities and energy sector will benefit from improvement in discoms' balance sheet as more customers will line up to make pending payments using the old currency. Power demand growth to improve from in second half of FY18 led by higher demand from discoms, they believe. 

Vivekanand Subbaraman, anayst at Ambit said, "Demonetisation is not an issue for telecom, as consumer spends are unaffected given low-ticket spends. Channel checks indicate, that the temporary disruptions in the supply chain are being tided over as telcos also remain unaffected by demonetisation."

Meanwhile, the sectors who faced the most brunt of demonetisation were: real estate, followed by consumer durables, consumer discretionary, automobiles, basic material including agriculture stocks and industrials. 

As per analysts, realty sector is expected to be most affected. This sector is expected to have a price-correction which in turn will hamper real estate loans which is not a good sign for housing finance companies. 

Going ahead, at present except telecom remaining all sectors are trading positive in the range of 0.10% - 4%. Telecom index is trading flat at 1119.11.