The country’s inflation levels have already reached a whopping 0.44% and are expected to slump further into a negative scale. It is pulling economy into deflation. Analysts say election will be a double whammy for the investment sentiments which have already worsened. Deflation directly affects demand which spirals into lower production and more bearish trends. All the projects in the respective companies will be further delayed in expectation of bright future. Present economies of scale of producers would also get disrupted and curb expansion of present units.

In such gloomy conditions when big investors shun investments where should one invest? I would like to suggest going for companies which would not be affected by any demand shortage would be better off. By saying so I mean companies serving in health care, pharmacy, telecommunications, energy and power domains would be good plucks. Investors should also trace out those companies whose demand would go up when prices plummet. Packaged food goods are a good example of it. You should eschew from companies whose deficit account runs deep.

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