The document discusses the impact of COVID-19 on various sectors in India such as the stock market, aviation, pharmaceutical, and FMCG. It led to crashes in the stock market and losses for airlines as demand plummeted due to lockdowns. However, the pharmaceutical sector benefited from increased demand for medicines. While some FMCG companies initially struggled, they saw growth recover. Company case studies on SpiceJet, IndiGo, Cipla, Divi's Labs, Nestle, and Godrej provide financial analyses on how their stock prices and businesses were affected.

1. IMPACT OF COVID 19 ON THE INDIAN
STOCK MARKET
BY: VIKAS GUGLOTH
BBA Sem V
A70006418074

2. INTRODUCTION
The outbreak of Covid has had a devastating impact globally. It rendered all the interactions to a standstill. The outbreak
started in the December of 2019 and spread to the majority of countries by the end of March. The measures taken to tackle
the pandemic i.e. social distancing and lockdown disrupted the production, supply chain, structure and operation of various
companies. The lockdown had also caused a sharp decline in the demand of goods and services which lead to the collapse of
economic activity around the globe. India, being the second most populated country and a developing economy, faced a
serious threat from the global pandemic. As expected , the Indian stock market took a heavy blow due to the imposition of the
lockdown.
IMPACT ON THE INDIAN STOCK MARKET
Due to the uncertainty of no proper treatment for the virus and rise in the number of cases daily, this led to a high volatile
market which impacted consumption level of the economy and further led to crashes and wealth erosion. This created a panic
situation for the investors in the Indian stock market.
The domestic equity markets on March 12, when both BSE Sensex and NSE Nifty50 crashed by more than 8% in a single day,
this drastic fall reportedly wiped out Rs.10 Lakh crores of market capitalisation in a single day.

3. IMPACT ON AVIATION SECTOR
INDUSTRY OVERVIEW
The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three
years. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become
the third largest air passenger market by 2024^
The Aviation sector in India currently contributes $72 bn to GDP.
India has 464 airports and airstrips, of which 125 airports are owned by Airport Authority of India (AAI). These 125 AAI
airports manage close to 78% of domestic passenger traffic and 22% of international passenger traffic.
Passenger traffic in India stood at 316.51 mn during April 2018 - Feb 2019. Out of which domestic passenger traffic stood at
252.92 mn while international traffic stood at 63.59 mn. The aircraft movement, passenger traffic and freight traffic increased
by 4.9%, 4.5% and 3.1% respectively in February 2019 viz-a-viz February 2018, across all Indian airports taken together.
However, the share of international cargo traffic is much higher at 68.5% in comparison with 31.5% of domestic cargo traffic.
Maintenance, Repair & Overhaul (MRO) industry is expected to grow to $1.2 bn by 2020 from $950 mn currently.

4. COMPANY
OVERVIEW-SPICEJET GRAPH ANALYSIS( 1 year)
Jan 1 2020 Spicejet stock is Rs. 116 per share
March 25 2020 Spicejet stock hits low Rs.30.65 per share due to lockdown
and travel ban
Oct 23 2020 Spicejet stock price Rs. 52.15 per share.
Spicejet Ltd is an India-based company engaged
in transportation of passengers by air. The
Company is engaged in the business of
scheduled air transport services.
COVID 19 IMPACT
SpiceJet’s losses were expected to be around
₹1,000 crore, owing to operational disruptions
and low fixed cost coverage. Spicejet carried
92% fewer passengers than it carried last year in
the same quarter.
MEASURES TAKEN
Spicejet resumed operations on May 25, 2020.
The airline started operating to 41 domestic
destinations with 204 daily and 1431 weekly
flights. There has been a steady improvement in
the number 0f passengers for the past few
months.

5. COMPANY
OVERVIEW-INDIGO GRAPH ANALYSIS (1 YEAR)
Jan 24 2020 Stock price of IndiGo Rs. 1501.50 per share
Mar 24 2020 Stock price of IndiGo Rs. 771.30 per share
Oct 9 2020 Stock price of IndiGo Rs. 1367 per share
IndiGo is an Indian low-cost airline
headquartered in Gurugram, Haryana, India. It is
the largest airline in India by passengers carried
and fleet size, with a 60.4% domestic market
share as of July 2020. The airline operates 1,500
flights everyday to 87 destinations – 63
domestic and 24 international. It has its primary
hub at Indira Gandhi International Airport,
Delhi.
COVID 19 IMPACT
IndiGo’s losses tallied up to Rs. 871 crore due to
the pandemic. Even though IndiGo started flying
its planes since May 25 , they are allowed to fly
at only 33% capacity for the next three months.
MEASURES TAKEN
As passenger revenue took a hit due to the
travel ban and lockdown, IndiGo ramped up its
cargo operations due to high demand for
transportation of essential supplies. Due to the
lack of passengers, IndiGo used their passenger
planes for transportation as their capacity was
larger than cargo planes. The sharp rise in the
international cargo rates from 1000$ pr tonne to
3000$ per tonne further improved the revenue
from cargo planes.

6. IMPACT ON PHARMACEUTICAL SECTOR
INDUSTRY OVERVIEW
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.India enjoys an important position in
the global pharmaceuticals sector. The country also has a large pool of scientists and engineers with a potential to steer the
industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
Indian pharmaceutical sector is expected to grow to US$ 100 billion, while medical device market is expected to grow US$ 25
billion by 2025. Pharmaceuticals export from India stood at US$ 20.70 billion in FY20. Pharmaceutical export includes bulk
drugs, intermediates, drug formulations, biologicals, Ayush and herbal products and surgical.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics
is expected grow at an average growth rate of around 30% a y-o-y to reach US$ 100 billion by 2025.
India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$ 20.03 billion) in 2019, up 9.8% y-o-y from Rs
129,015 crore (US$ 18.12 billion) in 2018.

7. COMPANY
OVERVIEW-CIPLA GRAPH ANALYSIS ( 1YEAR)
On March 13, 2020 Stock price of Cipla Rs. 355.30 per share
On August 10 , 2020 Stock price of Cipla Rs. 795.60 per share
On October 12, 2020 Stock price of Cipla Rs. 813.00 per share
Cipla is a market-leading medicine maker in India.
The company has roughly 1,500 pharmaceutical
products in more than 60 therapeutic categories.
Some are sold domestically, while the rest reach
international markets in more than 150 countries. It
offers prescription drugs for all kinds of ailments --
arthritis, cancer, depression -- as well as over-the-
counter drugs for colds, oral hygiene, and skin care.
Cipla leads the domestic retail pharmaceutical
market. The firm also makes bulk drugs,
agrochemicals, and animal products. It has eight
manufacturing plants located throughout the
country.
COVID 19 IMPACT
Covid has had a positive impact on the pharma
industry. In August, Cipla shares hit 52 week high.
The shares saw a 128% surge since March. The
company posted a 26.6 percent on-year jump in net
profit at Rs.566.04 crore in the first quarter. The
company had reported a net profit of Rs.447.15
crore in the same quarter a year ago.
Foreign brokerage firm Morgan Stanley sees over
16 per cent in Cipla stock. It has revised its price
target to Rs 847 apiece from Rs 486 apiece earlier.
The foreign brokerage also said that Cipla has
positioned itself as a key generic player in global
markets. It has proven success with the depth of its
product portfolio and breadth in overseas markets.
Cipla recently launched albuterol in the US market
and has complex drug Advair in the regulatory
queue.

8. COMPANY
OVERVIEW-DIVI’S
LABS
GRAPH ANALYSIS ( 1 YEAR )
On Mar 13, 2020 Stock price of Divi’s Laboratories Rs.1626.00 per share
On Jun 20, 2020 Stock price of Divi’s Laboratories Rs.2480.05 per share
On Sept 18, 2020 Stock price of Divi’s Laboratories Rs. 3389.00 per share
Divi's Laboratories Limited is engaged in
manufacturing and sale of active
pharmaceutical ingredients (APIs) and
Intermediates.
COVID 19 IMPACT
Divi's Laboratories Ltd has become the second most
valuable listed pharmaceutical company with its
share price rising 65% so far in 2020, beating
drugmakers like Aurobindo Pharma, Dr. Reddy’s
Laboratories Ltd and Cipla Ltd that have much
higher revenues.
Divi's Lab reported an 80.61% rise in consolidated
net profit at ₹492.06 crore for June quarter 2020
mainly on account of robust sales. The company
logged a profit of ₹272.44 crore in the year-ago
same period, Divi's Laboratories said in a filing to
BSE.
Divi’s sales grew 49% year on year to ₹1,730 crore
for the June quarter, led by custom synthesis as
well as generics. The gross margin expanded 190
basis points year on year to 63% on a superior
product mix and lower raw material cost. Ebitda
was up by 78% year on year to ₹7 crore for the
quarter.

9. IMPACT ON FMCG SECTOR
INDUSTRY OVERVIEW
Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household and personal care accounting for
50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for
the sector. The urban segment (accounts for a revenue share of around 55%) is the largest contributor to the overall revenue
generated by the FMCG sector in India. However, in the last few years, the FMCG market has grown at a faster pace in rural
India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for
50% of the total rural spending.
The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade
expected to grow at 20-25% per annum, which is likely to boost revenue of FMCG companies. Revenue of FMCG sector
reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and is estimated to reach US$ 103.7 billion in 2020. FMCG market is
expected to grow at 9–10% in 2020.
Rise in rural consumption will drive the FMCG market. It contributes around 36% to the overall FMCG spending. FMCG urban
segment witnessed growth rate of 8%, whereas, rural segment grew at 5% in the quarter ended September 2019

10. COMPANY
OVERVIEW-NESTLE
INDIA
GRAPH ANALYSIS (1 YEAR)
On March 24, 2020 Stock price of Nestle India Rs. 12200 per share
On April 17, 2020 Stock price of Nestle India Rs. 18369.95 per share
On October 8, 2020 Stock price of Nestle India Rs. 16304 per share.Nestle India Limited is an India-based company
engaged in food business. The Company
operates in the Food segment. The Company's
food business incorporates product groups,
which include milk products and nutrition,
beverages, prepared dishes and cooking aids,
and chocolate and confectionery
COVID 19 IMPACT
Shares of Hindustan Unilever Ltd (HUL) and
Nestlé India Ltd hit new 52-week highs on
Wednesday. With stocks correcting across the
world owing to the impact of covid-19 and
related lockdowns, the performance of Indian
consumer stocks is striking to say the least. Note
that shares of Unilever Plc. and Nestlé SA are
trading about 22% and 10% lower compared to
their 52-week highs.

11. COMPANY OVERVIEW-
GODREJ GRAPH ANALYSIS (1 YEAR)
On Jan 16, 2020 Stock Price of Godrej Rs.772.00 per share
On Mar 23, 2020 Stock Price of Godrej Rs.425.10 per share
On Oct 5, 2020 Stock Price of Godrej Rs. 752.55 per share
Godrej Group, is an Indian conglomerate
company headquartered in Mumbai,
Maharashtra, India, managed and largely owned
by the Godrej family. It operates in sectors as
diverse as real estate, consumer products,
industrial engineering, appliances, furniture,
security and agricultural products.
COVID 19 IMPACT
Godrej Consumer Products did not see any
major growth during this lockdown according to
its Q1FY2020 report but the growth was enough
for it to be considered in the portfolio. It clocked
a neutral performance with revenues only
increasing by 5% in India and Indonesia while
the OPM expanded by 77 bps to 20.3%. The
domestic volume grew by 3% with rural growth
staying ahead of urban growth. A 95 growth was
seen in the portfolio which consisted of 85% of
household insecticide (HI), hygiene and value
for money products. A strong demand was seen
in HI and hygiene products due to the need for
sanitization in the ongoing virus. A strong
growth of 27% and 15% was seen in the two
products respectively. The management is
hopeful that there where will be a sequential
improvement in gross margins and in HI
products over the coming quarters. A few minor
negatives faced by the company were that hair
colour products had declined by 18% as their
demand fell.

12. CONCLUSION
The pandemic of Covid 19 has had an unprecedented impact on almost every business. The uncertainty of the nature of the
virus forced governments around to make decisions without evaluating them properly. This had an adverse effect on the
stock market for many companies. As shown in the report, the aviation industry was one of the most severely affected
industries due to the the pandemic. It will take some time for the industry to recover as they will not be allowed to operate
at full capacity for a long time. For most of the companies, Covid has been a bane but for some industries , it has been a
boon. Eg- FMCG sector and Pharma Sector. Though they faced losses at the beginning of the lockdown, they had tremendous
profits later.