Analysts turn cautious; prefer defensives amid sporadic lockdowns

Activity levels, analysts at Jefferies believe, will take a significant hit across sectors such as infrastructure, real estate, discretionary, and durables as more local lockdowns are announced

Curbs in Maharashtra put in place in the backdrop of rising Covid-19 cases followed by the night curfew imposed in Delhi has made analysts a worried lot, with brokerages now favouring defensive stocks over cyclical plays.

With Covid-19 cases rising in the country, they feel more restrictions could follow across major cities. Though a national-level lockdown is ruled out for now, the state-level situation will be different. As such, Maharashtra and Delhi’s measures may be followed in other states in case coronavirus cases spike. As a result, the potential spread of local lockdowns would likely delay the expected