The report talks about how the indian stock market is affected from COVID-19 and also for reference we have used market price trends of 9 companies like Infosys, TCS, Hero Motocorp, Tata Motors, HCL, Maruti Suzuki, Sn pharma, Panacea Biotec and Zydus Wellness.

1. IMPACT OF COVID-19
ON INDIAN STOCK
MARKETS
BY: BHAUMIK MAJITHIA

2. ABOUT THE
REPORT
Pharmaceutical
Sector
IT Sector
Automobile Sector
The report would take
over the analysis of
three main sectors of
Indian Economy.
1.
2.
3.
To further understand
the impact and how
sectors have reacted
we would also look at
three companies from
each sector and
analyse the impact in
detail

3. PHARMACEUTICAL SECTOR
Indian pharmaceutical owns a major share of global market be it generic medicines or
various vaccines. If we go by statistics over 50% of global vaccine are exported by
Indian companies.
The rising prices of key ingredients are initial indicators: The prices for vitamins and
penicillin are double or triple the price. Similarly, the cost of paracetamol has gone up.
If the pandemic continues then stockpiles of pharmaceuticals, APIs, and other
chemicals may decrease, resulting in shortages.
India’s significant dependence on Chinese Active Pharmaceutical Ingredients (API):
According to Bloomberg, 70% of India’s imports of APIs come from China, totalling
$2.4 billion of India’s $3.56 billion in import spending for those
products each year.
Fake Products: Yes, these headlines do create a wrong perception globally especially
when India is aspiring to be a superpower in this space. Government Control on Drug
pricing: This is directly impacting the confidence levels of
companies to invest respectable amounts in R&D.
Rising number of US FDA inspections: The number of inspections is at an all-time high.
This comes as no surprise considering India has the most USFDA approved sites.
MAJOR ISSUES FACED BY SECTOR

4. Government of India and Finance Ministry allowed a complete 100% FDI in
Greenfield projects of companies of Pharmaceutical Sector while for brownfield
projects FDI was opened up till 74%.
Pharmaceuticals sector recorded ground breaking sales turnover of Rs. 52 crores
Under Budget 2020-21, Rs. 65,012 crore (US$ 9.30 billion) has been allocated to
the Ministry of Health and Family Welfare
The Government has allocated Rs 34,115 crore (US$ 4.88 billion) towards the
National Health Mission under which rural and urban people will get benefited.
Rs 6,400 crore (US$ 915.72 million) has been allocated to health insurance
scheme Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)
Further we would analyse three companies from this sector to
understand the impact and remedies made to overcome the
impact.
RECENT DEVELOPMENTS

5. The stock price went to its highest in 2020 on August 28th exactly two days
after the company released its Financial Report for the first quarter of financial
year 2021.
Sun Pharmaceutical was one of the leading companies in race to develop
COVID-19 vaccine.
Sun Pharmaceuticals launched a drug named “FluGaurd” which was similar to
Hydroxychloroquine but was cheaper.
It had to call back around 750 bottle of particular drug due to manufacturing
fault and resulted in the price drop.
Apart from these company also acquired various other sister companies to
strengthen its reach on global front.
The most severe issue was to keep the supply chain intact and the acquisition
helped company in reaching out to maximum consumer markets.
Following is the chart representation of the company's bullish growth since
April 2020
SUN PHARMACEUTICAL INDUSTRIES LTD.

6. Panacea Biotec is an Innovation driven Biotechnology company doing Research
and Development, Manufacturing, Sales, Distribution and Marketing of
Pharmaceuticals, Vaccines and Biosimilars.
Panacea Biotec is also a leader in creating vaccine for COVID-19.
To assure ground-breaking results it has also entered in JV with Rafena a US
based company.
Panacea is the only company to get permission to start human trials of its
vaccine.
Moreover the company has also developed a dengue based vaccine which has
cleared all the trials.
The company has been proactive in order to face the unpredicting pandemic.
Following is a graphic representation of the trend of stock prices and how the
company is trying to fight the pandemic and yet sustain in market.
The graph clearly indicates the bearish side of company before COVID-19 and its
effort to turn it into bullish market with its counter attack on COVID-19.
The company entered into JV with Rafena to increase its global reach as it has
potential on manufacturing front but needed an helping hand on distribution
aspect.
PANACEA BIOTEC

7. ZYDUS WELLNESS LTD.
Zydus Wellness nourishes, nurtures and energizes over 50Mn+ Families through
their portfolio of products. To achieve this there are over 2000 MSMEs working
under Zydus Wellness.
With pandemic hitting the door steps there was an surge in demand of hand
sanitizers which was sighted by Zydus and they promoted its launch to fight the
pandemic and also gain profits.
The company formulated a three pillar plan to flourish business under these
extreme circumstances.
The company would accelerate growth of core brands with innovations to focus
on portfolio diversification and expansion with an aim to recruit new customers.
The second pillar of the strategy is building scale in international business by
focusing on South Asian Association for Regional Cooperation (SAARC)
countries, the Middle East and Africa region and Southeast Asia region
Leveraging mergers and acquisitions is the third part of the company's strategy
to significantly grow scale.

8. MARSHALL INC. JULY 2018
0
30
60
90
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Domestic Challenges: Indian organizations are slow in adopting
technologies. They are still stuck with the traditional models. This is
because of the lack of skilled employees, conventional infrastructure,
as well as restrictive regulations.
Negative reputation around the world: Increasing amount of frauds and
many a times big companies like TCS and Infosys were slammed big
amount of fines which generates a negative message around the globe.
Data protection and privacy rules: Not all the IT companies in India can
comply with GDPR and other data protection rules, many had to stop
serving EU customers.
Economic Slowdown: Major revenue of IT sector comes from exports
and post COVID-19 every economy is growing at a very slow rate and
this will affect
the sector for a long period.
IT SECTOR
India is home to world of IT industry. Around 75 percent of global digital
talent is present in country and is growing day by day. The revenue for FY20
was at around US$ 191 billion, growing at 7.7 per cent. Indian IT's core
competencies and strengths have attracted significant investment from
major countries. Indian IT industry consists of IT and BPM companies.
MAJOR ISSUES FACED BY SECTOR
POST COVID-19 VISION
The IT industry is expected to grow to US$ 350 billion by 2025 and BPM
is expected to account for US$ 50-55 billion of the total revenue.
Around 20,000 job opportunities were created in the second quarter
itself.
Companies are planning to continue work from home culture to retain
low costs and earn higher profits.
To secure the data of clients companies are investing in cloud
computing and trying to make it secure and efficient.
There are hopes from AI based research to come with solutions to
restrict the spread of virus and continue the new normal life.
Further we would analyse three companies from this sector
to understand the impact and remedies made to overcome
the impact.

9. Bandwidth issue
Facilitating high tech equipment
Sharing of high sensitivity data
Storing of data over cloud computing
The company had different problems to overcome as it was difficult to
set up office like workspace at home. Issues faced were:
The company did resolves the above mentioned issues in a very short
period.
The work force was facilitated with extraordinary equipment to
maintain the workflow which resulted in profits in back to back
quarters and also dividend to shareholders.
On the other end it started tying up with different high end cloud
computing companies to safe guard the data of clients.
Currently around 80% of the workforce is working from home and
company has showed extraordinary results which can seen through the
bullish trend of the share prices below.
INFOSYS LTD.

10. TCS (TATA
CONSULTANCY
SERVICES LTD.)
TCS again is one of the old school IT firms which has grown along
with India and it economy and has been a crucial part of it. It was
established in 1968 which is around 50 years of experience. TCS
combines tech expertise and business intelligence to catalyse change
and deliver results.
TCS started with ways to make the work from home effective and also
developed ideas on how the return to offices could be done swiftly to
avoid any further more delay.
TCS developed an AI powered app which would monitor movement in
workplace with compliance to regulations laid out by government.
It also developed a new workforce analytical solution to identify
appropriate employee or a fresher for the role or task.
Along with these all measure TCS also acquainted with many other
companies to stronger its hold on the global map.
While other were trying to find a way to cure the pandemic TCS was
busy in making it a new normal and move ahead in business. This is
again proved by its share price chart trend.

11. HCL Technologies is a next-generation global technology company
that helps enterprises reimagine their businesses for the digital age.
It was established in 1976.
It launched a global competition for developer names HACKATHON
#CODEFORCOVID19. The idea was to gather suggestions on how to
fight the virus with use of technology and Artificial Intelligence.
Company was also monitoring the outbreak of virus since January and
had already speculated the disrupt and was ready with solutions to
make work from home effective.
It has also far sighted the issue of H1B1 visa regulation conflict in USA
and has started setting up back up plans in Mexico and Canada.
The company is trying to tap new global markets and thus want to
make its supply chain strong. Supply chain was one of the most hit
aspect of business even for necessities as there was low movement
yet extra load pressure.
The company has been performing excellent being on bullish side and
is expected to stay there for a longer period now.
HCL TECHNOLOGIES LTD.

12. AUTOMOBILE SECTOR
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.
The growing interest of the companies in exploring the rural markets further
aided the growth of the sector.
MAJOR ISSUES FACED BY
SECTOR
Production Cost: As soon as lockdown started all the manufacturing house were
forced to shut and that increased the standing costs of companies.
Import Ban: There has been an constant tension between India and China which
led to ban on import of certain commodities which has led to higher costs.
Increasing market of used cars: Day by day trend of buying used cars is
increasing leading to decline in demand.
Government pressure for pollution: Global warming has alarmed the
government and there has been an constant pressure to change the fuel based
cars to electric cars.
RECENT DEVELOPMENTS IN
SECTOR
Under GST, the tax on EVs reduced from 12% to 5%.
The Government announced to provide additional income tax deduction of Rs1.5
lakh (US$ 2,146) on the interest paid on the loans taken to purchase EVs.
Investment flow into EV start-ups increased nearly 170% to reach US$397
million.
Further we would analyse three companies from this sector to
understand the impact and remedies made to overcome the
impact.

13. Tata motors has strong focus on manufacturing excellence ensures that our
facilities carry out every step in the manufacturing process backed by leading-
edge R&D and meeting the highest standards of quality.
The Company responded quickly to the current crisis by implementing a temporary
lockdown of all its plants and instituted rigorous cost and investment controls to
conserve cash as much as possible.
The company has called out a cost savings program of Rs. 1500Cr and a cash
improvement program of Rs.6000Cr. As part of this, company has deferred or
cancelled lower margin and non-critical investment.
Thus this helped company on saving some huge chunk of money from losing.
Moreover company had set up a helpline number to address issue of front line
workers with their truck breakdowns and repairs. A new SOP was formulated which
helped in solving more than 10,000 requests if repairs.
Strategically it helped company in maintaining the cash flow as the company had
allowed moratorium of six months for all the passenger vehicles.
To speed up the recover this was also offered on new bought PV and CV as well.
Company also connected with banks to avail vehicle loans easily and generate
sales revenue.
Company also served with various methods to showcase products to customers
virtually to start the sales graph and moderate results were witnessed through
them.
The company is seeing recovery in the sales front with even commercial vehicle's
demand meeting the expected rate. Only demand for bus is has not yet spiked.
The company has not yet fully recovered from the impact and is still pretty steep
on the stock graph but is expected to do well post festive seasons,
TATA MOTORS

14. Hero MotoCorp has been at the forefront of designing and developing
technologically advanced motorcycles and scooters for customers around the
world. It became the world’s largest two-wheeler manufacturer in 2001, and has
maintained the coveted title for the past 18 consecutive years.
With over 90 million satisfied customers across the globe, it continues to
champion socio-economic progress and empowerment through its range of
products and services.
The sales figure has already been near to 80% of pre COVID-19 era. The company is
trying its best to meet the demand with consistent supply.
Company also shifted its engine to BS-VI and started rolling old models with new
changes like PASSION PRO.
To avoid public transport there has been an surge in demand of personal vehicles
especially two wheelers as to comply to increasing traffics.
Company also launched an EShop to enable its customers to buy vehicles online
with zero physical contact with staff.
Company also has a beneficial ground on the sales and distribution aspect which
attracted Harley Davidson to enter into a deal with Hero Motocorp.
The deal won't involve manufacturing or transfer of technology but Harley would
just hand over sales and distributions to Hero.
Hero is still looking to penetrate rural and semi urban areas more for sales
turnover and COVID-19 might just be the right push for that.
The company is past the recovery stage now and also made profits for both
quarters of FY21.
HERO MOTOCORP LTD.

15. MARUTI SUZUKI INDIA
Experiences fuelled by innovations, forward thinking, and a commitment to bring
the very best to Indian roads. Infusing design and technology is one such step it
has taken to make its cars meet new age expectations smoothly. Today, Maruti
Suzuki has its eyes set firmly on the possibilities of tomorrow. And everybody is
invited on this journey.
Suzuki along with its have joined hands with government to support the front line
workers and has started supplying PPE kits and using its production place to
produce 3-ply masks.
In order to cater more sales Suzuki partnered with various banks to provide
attractive offers to consumers to boost sales.
During lockdown the manufacturing units shifted towards production of masks,
PPE kits etc.
To further extend care towards existing costumers company extended its warranty
and free service till 30th June.
It also started with "Service on Wheels" and "Pickup at Door" service for
maintenance and repairs.
Company introduced "Health and Hygiene" range of genuine accessories.
To generate new idea it also partnered with IIM - Bangalore to incubate start-ups.
Helping government in making roads even more safe Suzuki partnered with
Microsoft to introduce HAMS based technology to evaluate drivers and roads.
The company is yet to reach the pre COVID-19 era but the
results are expected post Diwali or in early 2021.

16. THANK YOU
BY- BHAUMIK MAJITHIA
UNDER GUIDANCE OF - PROF. ABHIJEET DESHMUKH