The rapid spread of the unprecedented COVID- 19 pandemic has put the world in jeopardy and changed the global outlook unexpectedly. As many countries adopt strict quarantine policies to fight with the unseen pandemic, their economic activities are suddenly shut down Most of the developed and developing countries’ financial markets were drastically affected by this pandemic. Here we would like to observe and analyse the impact of COVID-19 on certain sectors of the indian economy in the stock market

1. ANALYSIS OF STOCK
MARKET AFTER COVID-19

2.  The rapid spread of the unprecedented COVID- 19 pandemic has put the world in jeopardy
and changed the global outlook unexpectedly. Initially, the SARS-CoV-2 virus, which
caused the COVID-19 outbreak triggered in Wuhan city, Hubei province of China in
December 2019, and with time it spread all over the globe. As many countries adopt strict
quarantine policies to fight with the unseen pandemic, their economic activities are
suddenly shut down
 Most of the developed and developing countries’ financial markets were drastically affected
by this pandemic. The US stock market hit the circuit breaker mechanism four times in ten
days in March 2020. Emerging economies were worst- hit by the collapse of oil prices.
 The government of India announced Janata Curfew on 22nd March 2020 and lockdown
policy to maintain social distancing practice to slow down the outbreaks from 24th March
2020. As the government announced a lockdown policy, it led to an economic slowdown.
 The Indian Financial and Stock Market witnessed sharp volatility as a result of the
disruption in the global market. It has also borne the brunt of the COVID-19 pandemic.
 Some economists have considered the impact of COVID-19 on the Indian stock market as a
‘Black-Swan Event’ i.e. the occurrence of a highly unanticipated event with an extremely
bad impact. This COVID-19 pandemic has affected both the demand chain and supply
chain.
 The stock market especially the BSE Sensex become volatile during the pandemic period.
In the case of another stock index, NSE Nifty, it was found that there is no such significant
impact of the COVID-19 period on the volatility of NSE stock prices
 Benchmark BSE Sensex has had a steep dive of 13.2% on 23rd March, 2020, which was
the biggest single day fall ever surpassing the infamous fall of 28th April, 1992 after the
news of Harshad Mehta Scam. Nifty was no different when it declined almost 29% in
the last three months of the FY20, overtaking the disaster of 1992. The severity was
such that only one tenth of the Nifty stocks saw a surge while rest has bitten the dust.
 In the pre-COVID-19 period, the price was high but during the COVID-19 period it shows
a declining trend up to the 1st lockdown period i.e. to the end of March but after this, it
again takes an upward movement gradually. It is on account of the relaxation added to the
lockdown policy by the Indian government. The unprecedented pandemic has already
brought challenges to almost all countries
Introduction:

3. Automobile Industry
• India became the fourth largest auto market in 2019 displacing Germany with
about 3.99 million units sold in the passenger and commercial vehicles
categories. India is expected to displace Japan as the third largest auto market by
2021
• The two wheelers segment dominate the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of
the companies in exploring the rural markets further aided the growth of the
sector.
• The auto sector has shown a sharp sectoral recovery of over 41% from the lows
of 24 March. This can be attributed to value buying by long term investors as well
as bets on post COVID-19 recovery in consumer demand
• The graphic below captures the returns on the NSE Auto Index since Jan 01,
2020. The Index has certainly bounced from the lows of March but it is still more
than 50% below the peak levels of 2018.

4.  Domestic sales of automobiles were impacted by multiple factors like high fuel
prices, NBFC liquidity crunch and low consumer confidence. However, exports
have done a lot better till COVID-19 began.
 Two wheeler exports have continued to remain robust and that is reflected in the
steady growth over the last 3 years at a time when domestic sales have stagnated.

5. Effect of Covid-19 on Automobile Industry

6. Tata Motors
• Tata Motors was established in 1945 under the Tata Group. It is among the world’s
leading manufacturers of automobiles with around 81,090 employee strength. It was
the market leader in commercial vehicles segment with about 44 per cent market share
in FY18.
• Tata Motors is one of the oldest and trusted brand with extensive distribution and
strong market penetration in India.
• Stock Performance after COVID-19: Sales dropped by 18.2% whereas Profit
dropped by 24.9%. Sequentially Sales grew by 67.4%.
•Net Profit Qtr Cr of Tata Motors Ltd
•Total Revenue Qtr cr of Tata Motors Ltd. Top Indian Exporters
among Listed Companies
•283.6% returns for Nifty 500 over 6.3 years
•Growth in Net Profit with increasing Profit Margin (QoQ)
•Increasing profits every quarter for the past 2 quarters FII / FPI or
Institutions increasing their shareholding
•Growth in Operating Profit with increase in operating margins (YoY)

7. Strategies and Schemes during Covid-19
• Tata motors have launched Click To Drive, which is an end-to-end digital sales
initiative that has taken the entire vehicle product sales online. It has been integrated
with all Tata motor dealers from more than 750 outlets across the country and offer
vehicle home delivery for customers at a later date.
• Providing long tenure EMI schemes up to 8 years thus lowering the amount of
their monthly EMI payment. The option of customizing EMI payments every year in
line with their cash flows offers more convenience and enhances benefits.
• To recognize the efforts of truck drivers and acknowledging their role on the
frontline of covid-19 pandemic, they launched a #ThankYouIndianTruckers
campaign.
• Following the footsteps of parent company Tata Sons, Tata Motors, one of India’s
leading automobile manufacturers has too adopted a strategy to contain the spread
of Covid-19. The company’s plan of action is focused on E3 directives –
• Essential Supplies provision:
• The company has provided over 25,000 Food packets (cooked meals) and over 5000
Grocery kits (ration) and is continuing its efforts to ensure health of the
underprivileged communities.
• Tata Motors partnered with Indian Oil Corporation Ltd. to distribute food packets
and personal protective kits to truck drivers visiting companies
• Equipping heroes on Ground-Zero:
• Tata Motors is supporting and assisting Self-Help Groups to manufacture home-
made certified masks and sanitizers to be distributed to hospitals, vendors, health-
workers, police stations, army personnel, in communities around the company’s
plants. Ti
• Educating masses for containment and prevention:
• Tata Motors is emphasizing on good health practices by putting up banners and
other related information material to spread awareness in slums and amongst low-
income group communities.

8. Maruti Suzuki Limited
• Maruti Suzuki India Limited, subsidiary of Suzuki Motor Corporation, Japan, is India’s biggest
car maker with more than 51 per cent market share in the passenger vehicles segment in April-
August 2019. The company recorded sale of 1,563,297 units in FY20.
• Maruti Suzuki has also announced a series of measures for the extension of warranty and service of
customer vehicles.
• MSIL would work with AgVa Healthcare to rapidly scale up production of ventilators. The intention is
to reach a volume of 10,000 units per month.
• As the fight against COVID-19 continues, Maruti Suzuki contributes 10,000 meters of cotton cloth to
the Government of Haryana to help prepare more than 1.5 lakh face masks. This initiative will also help
in stimulating Government of India’s resolution in building AatmaNirbhar Bharat or Self-Reliant India.
• Stock Analysis after COVID: Sales grew by 10.3% whereas Profit grew by 2.1%. Sequentially
Sales grew by 356.3%. Has maintained consistent sales growth in the past, Provides a
dividend yield of 1.38 %. I recommend this stock due to good profitability, safety and growth.
Growth(-26.54) is lower compared to its industry growth(-20.29) .
•Total Revenue Qtr cr of Maruti Suzuki India Ltd
•Total Revenue Qtr cr of Maruti Suzuki India Ltd

9. Mahindra & Mahindra
• Founded in 1945 as a steel trading company, Mahindra and Mahindra (M&M)
entered automotive manufacturing in 1947 to bring the iconic Willys Jeep to Indian
roads.
• Net profit stood at Rs 351.35 crore , up 34.4 percent annually, and EBITDA stood at Rs
1,908.09 crore Q2FY21, up 1.25 percent from Rs 1,884.56 crore in the year-ago period.
• Mahindra and Mahindra (M&M) surprised the street with better than expected margins
performance (at 13.6 per cent) despite the challenges witnessed in Q4FY20. While the
automaker registered a loss of Rs 3,269 crores due to a one-off expense, it was the
commentary from the management that seemed to have perked up the investor sentiment,
pulling the stock more than 7 per cent higher. Note that this was company's first quarterly loss
in nearly two decades
• Stock Analysis after Covid: Sales dropped by 37.3% whereas Profit dropped by
211.2%. Sequentially Sales has dropped by 19.1%. I would recommend to invest in
this share if you have less risk appetite and want safety [ because of brand value]
and industry outlook.
•Net Profit Qtr Cr of Mahindra & Mahindra Ltd
•Total Revenue Qtr cr of Mahindra & Mahindra Ltd

10. Telecommunication Industry
The Indian Telecom Industry has been on an upward growth
trajectory and has the second largest telecom network
globally also India ranks as the world’s second largest market
in terms of total internet users. The number of internet
subscribers in the country increased at a CAGR of 45.74 per
cent during FY06-FY19 to reach 636.73 million in FY19.
India is the world’s second largest telecommunications
market. It’s total telephone subscriber base and Tele-density
reached 1,177.02 million and 87.45 per cent, respectively, as
of January 2020. India had over 500 million active internet
users (accessed Internet in the last one month) as of May
2020.

11. Reliance JIO
• Reliance Jio has launched the new pack of Rs 251 which provided 2GB data per day for a period of
51 days. The data-only plan has been cleverly marketed and advertised as the Work from home
plan by the company to attract more and more users. No call and message facilities have been
provided with this pack as this is the data only recharge plan. Moreover the company has also
doubled the amount of data in its four prepaid plans in view of the need of the users. The prepaid
plans of Rs 11, Rs 21, Rs 51 and Rs 101 will provide double the data the company earlier used to
provide.
• Stock Analysis after Covid: Sales dropped by 43.8% whereas Profit dropped by 18.2%.
Sequentially Sales has dropped by 34.5%. Even though the stocks are volatile due to mixed market
sentiments, I recommend investing in RIL for maximum profitability and safety.
Net Profit Qtr Cr of Reliance Industries Ltd
Total Revenue Qtr cr of Reliance Industries Ltd

12. • Reliance Life Sciences has enhanced India’s COVID-19 testing capabilities by
developing its own confirmatory tests and is in the process of expanding this testing
capacity for India even further.
Reliance Foundation has donated Rs 535 crores to various relief funds, including
the PM CARES fund.
• Broadband At Home Through JioFiber, JioFi and its mobility service, Jio will
enable access to world-class and dependable Internet services.
(i) Fiber: To ensure that everyone stays connected while at home, Jio will provide Basic
JioFiber broadband connectivity (10 Mbps), wherever it is geographically feasible,
without any service charges, for this period.
(ii) Mobility: Jio will provide double-data across its 4G data add-on vouchers. It will
also bundle non-Jio voice calling minutes in these vouchers at no additional cost, to
meet the increased need of these services.
• JIO’s #CORONAHAAREGAINDIAJEETEGA INITIATIVE: Jio has introduced the
#CoronaHaaregaIndiaJeetega initiative. This initiative will enable Indian citizens to stay
safe while staying connected and productive, allowing for remote working, remote
learning, remote engagement and remote care. Jio reiterates its belief, that as a country,
we are in this together – JioTogether.
• World’s Leading Collaboration Platform Jio is combining its digital capabilities
with Microsoft Teams, the unified communication and collaboration hub for teamwork
in Office 365, to enable individuals, students, educational and healthcare institutions to
continue their professional lives while still practicing social distancing.
• Jio Haptik powers MyGov Corona Helpdesk: Reliance Industries Limited’s
subsidiary Jio Haptik Technologies has powered the Indian government’s new
WhatsApp chatbot, called 'MyGov Corona Helpdesk' to help address queries around
the Coronavirus outbreak and disseminate verified information.

13. Bharti Airtel
• Bharti Airtel Limited is a leading global telecommunications company with operations in 18
ountries across Asia and Africa. The company ranks amongst the top three mobile service
providers globally in terms of subscribers. In India, the company's product offerings include
2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed home
broadband, DTH, enterprise services including national & international long-distance services
to carriers.
• Stock Analysis after COVID: Bharti Airtel Consolidated September 2020 Net Sales at Rs
25,785.00 crore, up 22.02% Y-o-Y. I would definitely recommend investing in Airtel as it is
strong in profitability, safety and industry outlook.
Increasing Revenue every Quarter for the past 8 Quarters .77.1% returns for Nifty 500 over 4.5 years
Growth in Net Profit with increasing Profit Margin (QoQ).Increasing Revenue every Quarter for the
past 4 Quarters. Company with Zero Promoter Pledge.FII / FPI or Institutions increasing their Growth
in Operating Profit with increase in operating margins (YoY) .MFs increased their shareholding last
quarter
Net Profit Qtr Cr of Bharti Airtel Ltd.
Total Revenue Qtr cr of Bharti Airtel Ltd

14. • Network Technology: In the last three years, Airtel has invested over Rs 70,000
crores in high-speed network rollouts. Airtel has led the introduction of new
technologies such as pre-5G Massive MIMO and Carrier Aggregation.
• More recently, Airtel became the first mobile operator in India to launch Voice
over Wi-Fi to solve the indoor coverage issues faced by its customers.
• For its busy postpaid consumers, Airtel’s launched Platinum Network.
• Digital Gateways: To help customers recharge during COVID-19 lockdown,
Airtel launched ‘Superhero’ - a first of its kind program that allowed Airtel
customers to recharge the prepaid accounts of fellow Airtel customers through
Airtel Thanks app.
• Culture of Customer Obsession: The Airtel Management Board meets every
morning to review customer queries, resolution mechanisms and timelines, and
the leanings from customer feedback.

15. Vodafone Idea
• Vodafone Idea Limited,Vi is a pan-India integrated GSM operator
• As of 31 March 2020, Vodafone Idea has a subscriber base of 319.19 million, making it third
largest mobile telecommunications network in India and Sixth largest mobile telecommunications
network in the world.
• Vodafone Group Plc’s India unit is planning to raise about $1.5 billion fundraising.
• Vodafone-Idea has also started giving double the data in its new prepaid plans. For a recharge of
Rs 249, the users will get 3GB data everyday for a period of 2 days. In its Rs 399 and Rs 599
variants, the company will provide the same amount of data for a period of 56 and 84 days
respectively.
• Stock Analysis after COVID: Sales dropped by 5.4% whereas Profit dropped by 422.4%.
Sequentially Sales has dropped by 9.3%. Has maintained consistent sales growth in the past so I
slightly recommend investing in Vi due to good profitability, stable growth, good industry outlook
and safety.
Net Profit Qtr Cr of Vodafone Idea Ltd
Total Revenue Qtr cr of Vodafone Idea Ltd
Rising Net Cash Flow and Cash from Operating activity
375.3% returns for Nifty 500 over 5.9 yearsCompany with
Zero Promoter Pledge

16.  Bharti Airtel becomes the second highest mobile revenue company replacing Vodafone
Idea during Covid-19. This comes after the company changed its strategy and focused on
data subscribers along with weeding out low revenue customers.This makes it the
number 2 player after Reliance Jio in terms of mobile services revenues.
 Bharti Airtel witnessed a loss of only 1.5 million subscribers in June quarter, against
14 million subscribers lost by Vodafone Idea.
 Airtel has seen benefit because of managing data traffic and its data traffic growth
was 13 per cent successively and its average data usage was even higher than Jio’s
(a 4G-only player) at 11.9 gigabyte per month per user.
 Its mobile 4G data customers increased by 63.3 per cent reaching 95.2 million in Q1,
compared to 58.3 million in the corresponding quarter last year. The company also
witness a growth in content costs.
 In FY19, content costs for Airtel rose 30 per cent year on year (YoY), reflecting the
impact of content deals with Zee5 and Netflix.
 There is increase in spending on content leading to rapid growth in Airtel’s 4G base in
the past one year. In Q1 FY19, Airtel and Vodafone Idea had nearly equal, approximately
58 million, 4G subscribers.
 In Q1 of 2019-20, Airtel raced ahead to 95 million subscribers, leading by 11 million to
that of Vodafone Idea’s. However, Vodafone Idea grew 4 per cent in terms of average
revenue per user (ARPU), even as it lost 14 million subscribers.
 Airtel registered an industry best ARPU of Rs 129 for Q1, a 5 per cent growth. In
the return, it lost 1.5 million subscribers only.
 Airtel was able to maintain its top slot in the market in terms of revenue, as its top
line was up 2.8 per cent at Rs 15,345 crore (US$ 2.13 billion).
 Vodafone Idea posted revenues of Rs 11,269.9 crore (US$ 1.56 billion) in Q1 and Jio’s
revenues were Rs 11,679 crore (US$ 1.62 billion).
 Bharti Airtel’s India revenue is an integrated number comprising wireless, landline and
broadband services.
 In Q1 of the current financial year, Airtel’s mobile revenues saw a YoY growth of 3.7 per
cent whereas, Vodafone Idea revenue slipped by 4 per cent sequentially, as its strategy to
execute similar minimum recharge plans to boost revenue did not see the desired offtake.

17. Pharmaceutical Industry
• Pharma stocks continue to give good returns even as other sectors continue to feel the pinch
amid the ongoing coronavirus crisis. The best performing stocks are Aurobindo Pharma, Dr
Reddy’s Laboratories and Sun Pharma. The pharma sector is up ~1% YTD and has
outperformed the Nifty Index by 28%. Indian pharma has been relative resilient to the Covid
disruption, and is poised to gain from favorable currency tailwinds and stable outlook for
India and US business
• India pharma’s global standing
The Indian pharma industry has been a world leader in generics both globally and in domestic
markets contributing significantly to the global demand for generics in terms of volume.
• Risks from India pharma’s China linkages
India’s large import dependence on China (nearly 70% by value) has become a significant threat to
India’s healthcare manufacturing and global supply chain.
• Supply chain disruption for India pharma
Any disruption in supply chain of APIs can result in significant shortages in the supply of essential
drugs in India. The increased dependency of low-cost API is mainly attributed to China’s extensive
efforts towards developing economies of scale. India has significantly lost out on the API
manufacturing owing to the inadequate government support.
• Several Indian pharma companies (Aurobindo, Dr. Reddy) have acquired US ANDA (abbreviated
new drug application) portfolios which will aid growth going forward. The domestic pharma
industry is expected to grow at a 4-6 per cent in FY-2021 owing to Covid impact, though FY 2020-
2023, CAGR is expected to be in the range of 8-11 per cent on the back of healthy demand from
the domestic market given increasing spend on healthcare along with improving access, rating
agency ICRA has said.
• India plans to set up a nearly Rs 1 lakh crore (US$ 1.3 billion) fund to provide boost to
companies to manufacture pharmaceutical ingredients domestically.
• India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies over
50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all
medicine in the UK.
• Indian pharmaceutical sector is expected to grow to US$ 100 billion, Pharmaceuticals export from
India stood at US$ 20.70 billion in FY20.

18. Aurobindo Pharma
• The stock has given the maximum return of 194.7 per cent to the investors in this
pack. The share price of Rs 47,466.89 crore worth company touched a 52-week
high of Rs 828.45 on July 10. The stock hit a low of Rs 281.15 on March 23.
Aurobindo Pharma reported a 45.07 per cent year-on-year (YoY) jump in
consolidated net profit at Rs 848.99 crore for the March quarter.
• Aurobindo Pharma was founded in 1986. The company became a public company in
1992 and listed its shares in the Indian stock exchanges in 1995.
• Aurobindo Pharma exports to over 125 countries across the globe with more than 70 per
cent of its revenues derived out of international operations.
• Stock Analysis after COVID: Sales grew by 8.8% whereas Profit grew by 22.8%.
Sequentially Sales has dropped by 3.8%. Has maintained consistent sales growth in the
past. Provides a dividend yield of 0.62 %.I highly recommend investing in this share
due to high profitability, safety and industry outlook.
Net Profit Qtr Cr of Aurobindo Pharma Ltd
Total Revenue Qtr cr of Aurobindo Pharma Ltd

19. Dr Reddy’s Laboratories
• The stock has given 59.7 per cent return since January 30. The share price of the
company with market capitalization of Rs 65,491.68 crore hit a 52-week high of
Rs 4189.35 on June 10. The stock hit a low of Rs 2,623 on March 19. Dr Reddy's
Laboratories reported a 75.92 per cent year-on-year (YoY) rise in consolidated
net profit at Rs 764.2 crore for the March quarter.
Dr Reddy’s today is more than a 200-million dollar venture with presence in almost
all major therapeutic areas. Dr Reddy’s Foundation to reach the millions who are still
away from effective treatment and availability of the right medicines.
• Stock Analysis after COVID: Provides a dividend yield of 0.76 %,Profit
margins(16.16%) are low compared to its industry(17.33%) so I would slightly
recommend to invest due to high profitability, safety and growth.
Net Profit Qtr Cr of Dr. Reddy's Laboratories Ltd
Total Revenue Qtr cr of Dr. Reddy's Laboratories Ltd

20. Sun Pharma
• Sun Pharmaceutical Industries' stock has given 62.6 per cent return so far this year since
January 30. The scrip of the firm with a market capitalization of Rs 1,18,644.18 crore
touched a 52-week high of Rs 512.55 on June 9. The stock hit a low of Rs 315.2 on March
23. Sun Pharma reported a 37.12 per cent decline in its consolidated net profit to Rs
399.84 crore for the quarter ended March 2020, mainly on account of one time exceptional
loss.
• Stock Analysis after COVID: Sales dropped by 9.4% whereas Profit dropped by 219.3%.
Sequentially Sales has dropped by 7.3%. Has maintained consistent sales growth in the past
and revenues have improved so highly recommend to invest in this share as they have fair
valuation attractiveness and growth as well as profitability and safety.
Net Profit Qtr Cr of Sun Pharmaceutical Industries Ltd
Total Revenue Qtr cr of Sun Pharmaceutical Industries Ltd