RIL STOCK MAY GIVE GOOD RETURNS IN THE LONG TERM
economies around the world will gradually recover in the next 9-12 months’ time frame. Their economic forecast calls for a gradual and uneven healing of economic activity. The pace of recovery will affect regions, industries and individual companies differently and hence sector selection and asset allocation will be key in building resilient portfolios. But cases of infections are rising and the sting of March’s nosedive is still fresh in many investors’ memory and the markets epic rise in the last two months has made them worried about valuations. Is it that all stocks are risky stocks when the environment is uncertain? Investors should favour companies that are positioned to deliver robust earnings despite the tepid macroeconomic environment. This approach points to a high quality and growth-oriented stocks in equity portfolios and superior high rated debt instruments in the credit markets. Investors can find value among financially stable stocks whose valuations haven’t gone bonkers. A small allocation by Indian high net worth investors can be made towards arbitrage funds as a better alternative to other taxable instruments. Many analysts tracking the oil and gas sector are quite bullish on certain stocks, though the sector has been on a roller-coaster over the last few months as supply and demand issues have brought crude oil prices to low levels. Another place value investors can look at is the retail sector. One Indian company which completes the page with excellent blue chip verticals like Jio, retail and oil and gas is Reliance Industries Ltd. Analysts are betting that even though the stock has doubled in the last 6-7 months, the best is yet to come—a must in any investor’s portfolio.
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.
LONDON: The British Airways announced that its fleet of Boeing 747 aircraft is likely to have flown their last scheduled commercial service and is proposed to be retired with immediate effect due to the “devastating impact” of Covid-19 on the aviation sector. “After nearly five decades of service and millions of miles flown around the globe, it is proposed that the airline’s remaining fleet of 31 747400 aircraft will be retired with immediate effect as a result of the devastating impact the Covid-19 pandemic has had on the airline and the aviation sector, which is not predicted to recover to 2019 levels until 2023/24,” the airline said, adding the “fuel-hungry aircraft” were being phased out as the airline has “invested heavily in modern long-haul aircraft including six A350s and 32 787s which are around 25 per cent more fuel-efficient than the 747”.