The document discusses the impact of COVID-19 on selected sectors of the Indian stock market. It notes that the aviation, financial, and automobile sectors were hit hardest. Aviation stocks like SpiceJet and IndiGo declined significantly due to reduced domestic and international traffic. Pharmaceutical stocks increased in value due to higher demand for medicines to fight COVID-19, with Sun Pharma and Dr. Reddy's Laboratory's shares performing well. Automobile sales dropped sharply, especially for commercial vehicles, with only tractor sales holding steady. The pandemic significantly impacted major sectors of the Indian economy and stock market.

1. IMPACT OF COVID-19 OF SELECTED
SECTOR OF
INDIAN STOCK
MARKET
ABHISHEK BHADORIYA

2. IMPACT OF COVID-19
Covid-19 has hit the Economies of the world very hard. Financial Institutions are heavily impacted by this pandemic. Due to
lockdown in nearly every corner of the world, most of the manufacturing units as well as retail outlets have to halt their
processes. This has affected the economic cycle of most of the countries around the globe. The negative effects of Covid 19
can be seen in Stock markets as well.
Talking about the Indian stock market, we can clearly see that indices like Sensex and Nifty both have fallen down. Just
before the Covid 19 entered the Indian Territory, we witnessed Indian stock market at its boom. Sensex and Nifty were at its
all time high.
But the negative effect of this pandemic made us witness the lower circuits in the stock market. Since then, we can see the
market rising, but with fear still prevailing among the investors and traders.
While the price of many stocks is falling, the healthcare and medical sector saw its stocks price going up. This basically
happened due to high demand of such products in India as well as in the whole world.
Some sectors such as aviation, financial & Automobile are badly affected. We can expect some bearishness in the market as
of now.

3. SOME SECTORS ARE EFFECTED BADLY
Covid 19 Impacted 3 sector that are worst hit and the
Road ahead from them. Aviation, financials, and
automobiles are the three sectors that are at the front
among the sectors that are smarting under severe pain
now. The damage caused by COVID-19 is not confined
to only select pockets of businesses but it is a
widespread malady that is expected to keep th
economy sick for a longer time. While the magnitude
of the impact may vary from sector to sector, there are
some sectors that have suffered the most and
continue to suffer.

4. AVIATION SECTOR
• The contagion effect of the coronavirus (Covid-19) could soon bite
the Indian aviation sector that is already dealing with a modest
air-traffic growth due to the on-going economic slowdown.
• Spice jet & Indigo (Interglobe Aviation Ltd) & Jet Airways Stocks
are falling? Lets analyze the impact of Coronavirus outbreak on
aviation stocks,…
• Shares of aviation companies are under pressure on concerns that
the industry may face risks from the coronavirus outbreak. What
Lies Ahead? Are there any Trading Opportunities for Positional
Traders?

5. SPICE JET
The share of Spicejet Ltd fell by almost
48% from January 1, 2020. Since last 1
year, the stock price have dropped by
60% from its 52-week high of Rs.152.
INDIGO
The share of Interglobe Aviation Ltd
(Indigo) declined by 23% from January
1, 2020. Since last 1 year, the stock
price have dropped by 39% from its 52-
week high of Rs.1,891.

6. JET AIRWAYS
The Share of Jet Airways declined
by 13% from January 1, 2020.
Since last 1 year, the stock price
have dropped by 35% from its 52-
week high of Rs.34.5.
REASON FOR FALL IN SHARE
PRICE OF AVIATION STOCK
• Economic Slowdown
• Almost 75% of total revenue of Indian aviation
companies come from domestic traffic.
• Amidst dampened economic activities, India’s GDP
growth rate for FY2019-20 is declining consistently.
Quarterly GDP growth rates were 5.6% in Q1 FY20,
5.1% in Q2 FY20 and 4.7% in Q3 FY20.
• Thus, there has been a stagnancy in the passenger
growth over domestic flights amidst current economic
slowdown in India.

7. CORONAVIRUS OUTBREAK
• 25% of total revenues come from International Traffic. The region-wise % share in overall international traffic
is as following
• So, there has been a big shock for Indian airlines’ International Plans due to Coronavirus crisis spread across
many countries. A number of International flights to-and-fro China, Italy, Singapore, Iran etc are cancelled.
• So, Airlines are getting a big hit from Coronavirus outbreak.
• Executed Dip in Traffic will be experienced due to cancellation of many routes and dampened demand
amidst coronavirus fears.
• The subdued traffic will result into more pressure on fares & subsequently on Yields of these airlines.
• There has been a muted Passenger growth in Jan-Feb 2020 = 2-3%
• Whereas, last year, the Passenger growth in Jan-Feb 2019 = 16%
• It will affect the profitability of the aviation companies and will give a hit to their upcoming results in Q4
FY20 as compared to Q4 FY19.

8. PHARMACEUTICAL SECTOR
India is one of the top formulation drug exporters in the world,
the domestic industry relies heavily on the import of bulk drugs
(APIs and intermediates that give medicines their therapeutic
value). India imported around RS 24,900 crore worth of bulk
drugs in FY19, accounting for approximately 40 percent of the
overall domestic consumption. With India’s API imports from
China averaging almost 70 percent of its consul pharma motion
by value, importers are at the risk of supply disruptions and
unexpected price movements. For many critical antibiotics and
antipyretics, dependency on imports from China is close to 100
percent. These APIs require large capacities of fermentation
boilers, a USP of Chinese manufacturers, giving an upper hand to
Chinese manufacturers. Delivery and tracking of consignments
are still uncertain within China whether inward or outward

9. SUN PHARMACEUTICAL INDUSTRIES LTD
The price of sun pharma stock began increasing from
march as there was a demand for essential medicines,
PPE kits and immunity building tablets. On the hopes
of finding a vaccine the value of various pharma
companies is increasing. Price was Rs.365.25 on 20th
march. After that due to the covid pandemic the
share prices made a high of Rs 555.75 on 28th August
2020. Since 20th of march 2020 the share price of sun
pharma industries limited started taking a boom in
the share market as the share price of the company
was increasing. On top of that it increased its emit by
6%.

10. DR REDDY’S LABORATORY LTD
On 20th march 2020 the share price of Dr Reddy’s
Laboratories Ltd was RS 2623.95 due to covid
pandemic lockdown as there was a need of
medicines with increases the immune system and DR
Reddy being an Indian multinational pharmaceutical
company they had tie up with various foreign
medical institutions who were preparing the vaccine
for theCovid-19 pandemic. Due to this, the share
price of Dr Reddys Laboratories started increasing
tremendously. It also made 52 weeks high of Rs.
5333.35 on 18th September 2020. The revenue
generated by them is 17,460 crores in the financial
year 2019-2020.

11. DIVI’S LABORATORIES LTD
Divi’s Laboratories Ltd has been established for more than
29 years in Hyderabad, India. It has 2 manufacturing units
and is among the top pharmaceutical companies in India.
Divis lab got listed on stock exchange on the financial
year 2018-19. It has a team of around 350 scientist who
work together to give the best products to the customers.
The share price of Divi’s Laboratories ltd on 20th of march
2020 was Rs 1994.90. After that due to the covid
pandemic lockdown as there was a huge need of PPE kits
with the production started increasingly. Due to this the
revenue of the company also started increasing
simultaneously. As the company was earning a huge
amount of profit the share price of the company also
started increasing. The share price made a high of Rs.
3272.85 on 28th of august 2020.

12. AUTOMOBILE SECTOR
• India is the fourth largest automobile market in the world
after China, US and Japan.
• The automobile sector in India contributes around 7 % of
the GDP.
• However, in the recent past, the sector has been on a
down streak for a number of reasons such as oil prices,
weak rupee, rising insurance premium etc. A majority of
these factors have taken the road to recovery and this is
expected to have a positive impact on the auto sector.
• The above chart shows monthly trend of segment-wise sales volume for
last 1 year, from Jun’19 to May’20.
• Thus, we can clearly see that, there has been a huge decline in Auto sales
volume from Feb’20. The sales in Mar’20 was almost half that of Feb’20
due to the nationwide lockdown amid COVID pandemic in last 10 days of
Mar’20.

13. SEGMENT WISE ANALYSIS
A. Passenger Vehicles (PV)
• Domestic PV Sales declined 80-90% in May’20. The production during May’20 is ramping up
gradually and operating with limited workforce. It is mainly because of reverse migration of
workers due to the standstill economic activity amid nationwide lockdown. Also, there was
supply chain constraints due to lockdown.
B. Commercial Vehicles (CV)
• As we can see in the above chart, CV is the worst hit segment with a sharp decline in sales by
85-90%.
• Fleet utilization is an indicator which shows the extent to which available vehicles are used.
• Thus, already low fleet utilization amid lockdown dampened the new sales of CV in May’20.

14. C. 2-Wheeler (2W)
• Domestic 2-Wheeler volume in May’20 is down by 70-85%.
• The May Sales primarily supported by Semi-urban & Rural areas.
• Key Drivers : Shift to personal mobility, Normal monsoon, Festive demand in the
second half of FY21 i.e.. H2:FY21.
D. Tractors
• Tractors are the only Saving grace in grey territory of Auto sector. For May’20, Escorts
has reported a marginal sales decline 0.5% . While, Mahindra & Mahindra Tractors
reported a positive domestic sales growth of 2% .

15. CONCLUSION
Impact of COVID-19 is very disturbing. No one has been spared of its will
effects. Economies the about of a 100 plus countries have been destroyed out
of which some of them have asked for monetary help from IMF. Businesses
across the world namely hospitality, entertainment, aviation etc. have seen a
major negative impact. Various sports events such as IPL and Olympics have
been postponed. Schools and colleges have been closed. The virus has also
disrupted the functioning of various online giants such as Amazon. Countries
such as USA, Italy and Spain are suffering the most since their death toll is very
high. India faces a huge decline in government revenues and growth of the
income for at least two quarters as the coronavirus hits economic activity of
the country as a whole. Covid-19 has Impacted all the Sectors of Indian Stock
Market.

16. BIBLIOGRAPHY
• www.stockmarket.economictimes
• www.expresspharma.in
• www.businessworld.in
• www.moneycontrol.in

17. ABHISHEK
BHADORIYA