Impact of Covid 19 on different sectors of Indian Stock market.

1. IMPACT OF COVID 19 ON
INDIAN MARKETS

2. Impact of COVID 19 on Indian markets.
 The COVID 19 pandemic has had a huge effect on the Indian economies. The effect can be seen in
the sudden fall of GDP to 3.1 per cent.
 Major large-scale companies such as LARSEN & TURBO, Bharat Forge, UltraTech Cement, Grasim
Industries, Aditya Birla Group, BHEL and Tata Motors have temporarily halted or substantially
reduced operations and also forcibly terminated its workers in order to reduce their
additional losses.
 Young start-ups have been hit as funding has declined. The Government of India has proposed a
range of steps to resolve the crisis, ranging from food security and extra funds for health care and
the Member States to sector-related benefits and tax extensions.
 On 26 March, a host of economic relief initiatives for the poor were declared, totaling more than
1,70,000 crores (USD 24 billion). The next day the Reserve Bank of India also revealed a series of
steps that would make 3.74,000 crores (US$ 52 billion) open to the country's financial sector. The
World Bank and the Asian Development Bank have decided to assist India in combating the
coronavirus pandemic.

3. IMPACT ON INDIVIDUAL SECTORS
AUTOMOBILE SECTOR
 Automobile sector majorly depends upon the imports from China. The shutdown in China has
prevented the importation of different components impacting both Indian car makers and the auto
component industry.
If the slowdown occurs in China, it is anticipated to occur in an 8-10 per cent contraction in Indian
automotive production by 2020.
The pandemic has had a significant effect on the rise of the EV industry as the bulk of the battery
is supplied by the Chinese car smartphone industry.

4. PHARMACEUTICAL SECTOR
 While India is one of the world's top pharmaceutical exporters, the domestic
pharmaceutical industry relies heavily on imports of bulk drugs (APIs and intermediates
that give medicines their therapeutic value).
 India imported about Rs 24,900 crore of bulk drugs in FY19, accounting for roughly 40 %
of total domestic use. With India's API imports from China accounting for almost 70% of
its value-added consumption, importers are at risk of supply instability and unpredictable
price movements.
 Dependence on imports from China is close to 100% for certain essential antibiotics and
antipyretics. These APIs need a broad fermentation boiler power, the USP of Chinese
manufacturers, to give the upper hand to Chinese manufacturers. Delivery and monitoring
of shipments inside China is also unclear whether they are internal or outward.

5. TEXTILE SECTOR
 Many clothing or garment factories in China have suspended operations as a result of
coronavirus outbreaks, adversely impacting the export of textiles, yarn and other raw
materials from India.
 This disruption is likely to delay cotton yarn exports by 50%, leading to a significant effect
on spinning mills in India. As a result of this slowdown the has affected the inflow of
commodities and adversely affected the profits.
 Textile units may be hindered by paying annual interest and repayments to financial
institutions, thus defaulting on their fees.
 This will also adversely affect demand from cotton farmers, who were already seeing lower
prices, and fear that the price will fall further if the crisis in China continues.
 It can be said that India already has a price downside against countries such as Vietnam,
Pakistan and Indonesia which have duty-free access to China for the export of cotton yarn.

6. Sector specific stock Impact
PHARMA SECTOR
Sun Pharmaceutical Industries Limited
As you can see in the below Graph 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. The price of this stock shuffled according to
the vaccine development news.
Price was Rs.365.25 on 20th march. After that due to the Covid-19 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 EBITDA by 6%.

8.  Dr Reddy’s Laboratories Ltd.
 On 20th March 2020, Dr. Reddy's Laboratories Ltd.'s share price was Rs 2623.95 owing to
Covid's Pandemic Lockdown as mentioned in the below chart.
 Since there was a need for vaccines for an improvement in the immune system, and Dr. Reddy,
an Indian multinational pharmaceutical firm, had tie ups to numerous international medical
institutions that were planning the vaccine for the Covid 19 Pandemic.
 As a result, the share price of Dr. Reddy 's Laboratories has continued to grow enormously. It
also made 52 weeks strong by Rs. 5333.35 on 18th September 2020. They generated revenue of
Rs 17,460 crores in the financial year 2019-2020.

10.  Divis Lab
 Divi's Laboratories Ltd has been established in Hyderabad , India, for more than 29 years.
It has 2 manufacturing units and is one of India's top pharmaceutical companies. Divis Lab
was listed on the stock exchange for the 2018-19 financial year. It has a team of around
350 scientists who work together to deliver the best products to customers.
 The share price of Divi's Laboratories ltd on 20th March 2020 was Rs 1994.90. After that,
because of the covid pandemic quarantine, there was a huge need for PPE kits which
boosted the production of it. As a result , the company 's revenue also started to increase
simultaneously.
 One can notice on the graph the company was earning a huge amount of profit, the
company's share price also started to rise. The share price amounted to Rs. 3272.85 on
28th August 2020.

12. AUTOMOBILE SECTOR
Maruti Suzuki India Ltd.
Maruti Suzuki India Ltd. is officially known as Maruti Udyog Ltd., an auto smartphone maker in India. It
is a division owned by the Japanese car maker Suzuki Motor Corporation and holds 56.21 per cent of the
company's shareholdings.
 Maruti Suzuki India Ltd.'s share price as of 20th March 2020 was on Rs. 5079.20 as mentioned in the
chart below.
The automotive industry has had a major effect due to the covid pandemic lockout. Due to the covid
pandemic unemployment has begun to escalate enormously, so consumers have not chosen to purchase
new cars. The company's share price was struck and dropped to Rs. 4011.50 on 3rd April 2020.
When the controls levied by the government were lowered, the company's share price continued to
increase. It increased to Rs 7224 as of 8th September 2020.

14.  Mahindra & Mahindra Limited
 Mahindra & Mahindra Limited is a multinational maker of automotive electronic devices.
Its headquarters are in Mumbai. The share price of Mahindra & Mahindra Limited was Rs
332.60 as on 20th March 2020.
 Owing to the Covid pandemic, the company's share price was struck and dropped to the
price of Rs 277.85.
 Since the government began to reduce the constraints placed on companies, demand for
the automotive industry began to increase. As demand grew, the company's share price
rose to Rs 654.15 as at 18th September 2020.
 As the share price has rose, on the other hand, the firm has started making decent profits
and began to regain the losses suffered during the lock-down era.

16.  Tata Motor Limited
 Tata Motor Limited is an Indian multinational automobile manufacturer in India. Its headquarters are
located in Mumbai. It's a part of a group of tata. The share price of tata motors ltd as of 20th March 2020
was Rs 77.30.
 Due to the covid pandemic, when all the automotive industries experienced major losses, even the tata
engines were affected and their share prices began to fall. Tata Motors continued to incur losses as there
were no manufacturing and development operations taking place.
 After some time when the government decided to eliminate the restrictions that had been imposed on
them, all the automotive industries decided their production and manufacturing operations. When
production and processing operations resumed, the firms managed to regain the damages they had
suffered as a result of the covid pandemic lockout.
 As on 3rd September 2020 the share price took a boom and reached up to Rs 151.85 so eventually once
the limitations were reduced the company started generating small amount of profits which also led to
simultaneously increase in the value of the share price of the company.

18. Textile Sector
Raymond limited
 Raymond limited was established in 1925 in Thane, Mumbai. It is largest integrated manufacturer of fabric in
the world based in Mumbai. It has over 60% market share in suiting in India.
 It's also India's main producer of woolen fabrics. Raymond Limited's share price as of 20th March 2020 was
Rs. 274.60.
 Owing to the covid pandemic lockdown, no textile work was carried out so that the textile industry was
affected and suffered a large amount of damages as there was no company to be carried out. After the
government had announced that the removal of the constraints levied by the textile factories had already
begun their manufacturing process, so that eventually, as the manufacturing process had begun, the
corporation had also begun to recover the losses suffered by them.
 Raymond Ltd.'s share price as of 8th June 2020 was Rs 331, the share price itself shows us that the company
began its production on a large scale and at the same time the share price was also rising this change in share
price can be seen in the Graph below.

20.  Welspun India Limited.
 Welspun India is a garment company headquartered in Mumbai. It is the second
largest manufacturer of terry towel in the world in Asia.
 Due to a covid pandemic, there was no development that benefited the company, and
there was a national lockdown in other countries as well.
 The company suffered a large amount of damages due to the lack of shipments that
took place. The share price was as low as Rs 25.55 as on 20th March 2020 shown in the
graph below.
 As the state government continued to decrease the lockout, exports also continued at
the same time. As exports steadily grew, the companies also began to produce
revenue.
 The share price of the firm has also begun to increase and has risen to Rs 75.15 as of
on 22nd October 2020.

22. Page industries Limited
 Page enterprises limited are involved in the manufacture and trade of clothes. The company is
selling knitted apparel. The business sells a wide variety of items for men , women and children.
 The organization is involved in the distribution and selling of Jockey Goods. The Jockey brand is
available in more than 1400 cities and towns.
 Due to the Covid pandemic, there was little demand on the market that began to impede the
company's output. When production was hindered, the company continued to face losses as a
result of which the share price began to fall at an immense pace.
 The share price of the company was Rs 16,714.55 as on 23rd March 2020. As there was a full
lockdown worldwide, there was little demand for the commodity on the market which resulted in
a decline in supply. For a certain amount of time where the caps were lowered by the
government, the market for the commodity gradually began to increase.
 The company began to regain its losses as demand grew. The share price was as high as Rs
21,422.40 as on 1st October 2020.