The research investigates the impact of the lockdown period caused by the COVID-19 to the stock market of India. The study examines the extent of the influence of the lockdown on the Indian stock market and whether the market reaction would be the same in pre- and post-lockdown period caused by COVID-19 and also what are the ways company chosen to fight against it.

1. IMPACT OF COVID 19 ON SELECTED
SECTORS OF INDIAN STOCK MARKET
NAME:SONALI KHADARIA
COURSE:FINANCIAL
DERIVATIVES

2. Impact Of Covid-19 On Indian Stock Market
Drops in BSE sensitive index is temporary, and each dip provides investors with the opportunity to
enter the market and earn a higher return especially for those with long term horizon.
• The 2019 stock market rally was limited to 8-10 stocks within the large caps. The Sensex returned around 14%
(excluding dividends) for the year 2019 but prominently featured blue-chip companies without which Sensex
returns would have been negative. However, in the start of 2020, there was overall recovery which led to both NSE
and BSE traded at their highest levels ever, hitting peaks of 12,362 and 42,273 respectively.
A Comparison of Pre and Post Covid view of Indian stock market
• Ever since COVID 19 strike, markets loom under fear as uncertainty prevails.
• BSE Sensex and Nifty fell by 38%. The total market cap lost a staggering 27.31% from the start of the year.
Bourses
Indexes-14 Jan
20
Indexes-23 Mar
20
Indexes-24 Apr
20
INDEXES-25 Oct 20
Nifty 50 12,362 7,610 9,154 11,930
Sensex 41,952 25,981 31,327 40,145

3. • In response to current turmoil, RBI and the Government of India has come up with
a slew of reforms such as reductions of repo rate, regulatory relaxation by
extending moratorium and several measures to boost liquidity in the system
howsoever the pandemic has impacted the premise of the corporate sector.
• Deceleration of GDP growth, demand-supply chain, cut in discretionary expenses
and CAPEX has been the observed during the lockdown, which has led to falling
in household incomes, marketing spends, reduced travel cost and hiring freeze.
• Companies with innovative products, increasing distribution reach, technology-
driven processes and healthy balance sheet would revive the growth momentum
post lockdown.

4. Impact Of Covid 19 On Textile Industry
• This industry provides direct employment to over 45 million persons in the mill, power loom and handloom
sectors making it the biggest employer in the country after the agricultural sector. India is the world’s
second-largest producer of textiles after China.
• The industry is highly capital intensive in nature and is dependent for its capital requirements through
borrowings from banks and financial institutions. The industry constituted around 8% of the total gross
credit offtake from banks. In terms of the gross value, total outstanding debt for the textile industry stood at INR
23, 58,125 million in FY 2020. Positively, the gross NPA as a % of total gross debt in textile industry has been
falling since 2017, when it was as high as 27.5%.
• The growth projection of the textile and apparel industry in India, which was once projected to grow at a CAGR
of ~12% to reach INR 16,637 billion by due to the outbreak of the pandemic, it is expected that the domestic
market is seen shrinking by around 28%-30% to INR 4,163 billion led by the decline in the sales mostly in the
Q1 for the current financial year ending 20-21.

5. 1 crore job cuts likely in textile industry without govt support, says CMAI
• With around 80 per cent of the garment industry ,which has around 3,700 members employing over 7 lakh
people, said most of its members do not have the kind of reserves to see them through 3-6 months of this
magnitude.
The Indian export of yarn and the ready-made garment fell
• Indian Textile Industry fell as the yarn and ready-made garments exports fell by 90% Till the quarter of
March, the export of ready-made garments declined by 16% and by April further to 91%. The export
demand is likely to fall further as the largest exporter, the US, is also facing anti-racism protests along with
the pandemic. The US and Europe account for 60% of exports from India.
Measures taken by the Central Government
• The extension granted by the Government and RBI, pertaining to 6 months moratorium for interests and
for 4 years repayment period including one-year postponement for MSME segments for Covid-19 loans,
would provide the much-needed upliftment to the textile industry.
• 3,000 billion collateral free automatic loan for businesses
• With the allowance of 100% FDI in the sector under the automatic route it is expected to attract INR
10,485 billion foreign investments in the coming years

6. Impact on Siyaram’s Silk Mills Ltd.
Impact of the COVID-19 Pandemic on the Business
• The Company’s manufacturing facilities at all locations, retail outlets and offices remained shut down from 22nd March, 2020.
Company had partially resumed its manufacturing operation in all its units around 14th May, 2020 after taking all the necessary
precautions on heath care of its employees. The Company initiated work from home for the employees in the corporate office
since the lockdown was in force. The Company is confident about adapting to the changing business environment and respond
suitably to fulfil.
Impact on the Capital, Profitability, liquidity position etc.:
• Capital, financial recourses and Liquidity position: The Company’s and Banking facilities remain intact. At present
there are no liquidity concerns as we have sufficient unutilized Banking limits.
• Profitability: In view of the lockdown, the profitability during the current year will be adversely affected. In view of
the prevailing uncertainty, the full extent of the impact of COVID -19 pandemic on the financials of the Company
cannot be accurately ascertained at this juncture.
• Ability to service debt and other financial arrangements: The Company has been continuously servicing its debt
without opting for moratorium of payment of interest nor repayment of principle instalment. The Company has met its
obligations as per the existing schedule. The Company does not foresee any difficulty to fulfil its obligations.
• Supply Chain: There was an issue of Supply Chain during the period of lockdown however now due to the relaxation in
lockdown things are returning towards normalcy.

7. Siyaram’s launches anti-corona fabric with 99.94% effectiveness
• The fabric provides 99.94 percentage of protection against the virus also having non-leaching, anti-viral and anti-bacterial
properties. Testing of the fabric is done at a WHO certified and government approved Indian laboratory. It was also
tested in a reputed Australian laboratory availing the internationally accepted protocols. ” The anti-corona fabric is made
after treatment with technology from Australia’s HealthGuard Corporation Pty Ltd by applying Health Guard amic which
has proven effective against bacteria and viruses including the novel SARS-CoV2.
Siyaram’s is also planning to expand its online business which is currently at 10 percent.
• “Because of COVID-19 challenges such as social distancing, customers will avoid going to shops and there will be less
footfalls. So, they believe online is the way to go and they have allocated a higher budget for expansion of their online
platforms”
Quarterly Net Profit Results
Narration Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
Net profit 48.08 9.91 24.44 20.08 46.73 9.98 30.15 8.23 23.33 -67.33

8. Impact On Raymond Ltd.
• Raymond is one of the leading branded players in the menswear apparel industry in India with a portfolio of four Power
brands, namely Raymond Ready to Wear, Park Avenue, Color Plus and Parx.
• During the year, the Company continued to offer innovative products and service. There was continued momentum on enhancing
Raymond’s core proposition as a wardrobe solutions provider and the Company strengthened the apparel portfolio by further
expanding the new customer segments with Ethnix which was launched last year and caters to high growth premium ethnic wear.
• The Company has taken steps to ensure the health and safety of its employees and customers. Raymond has launched a
comprehensive range of PPE product offerings and sanitisation products that is getting encouraging response from customers.
• Measures are being undertaken, including extending support to our channel partners, to ensure seamless business continuity.
Digital capabilities are being scaled up to reach out to channel partners, customers and employees. The Company has undertaken
the process of cost rationalisation and various cost control measures related to sales and marketing, manpower, rentals and
others to minimise the impact on business.

9. What is the strategy that Raymond has adopted to face this situation?
• Right at the beginning of the lockdown, it urged their shoppers to stay indoors which is a bold step for a company which is the single largest
physical retail chain in the country. Despite lockdown, they continued to engage with their shoppers through lockdown stories based on human
values of compassion and care. This helped them to create brand love, and as the markets are opening up now, they are seeing shoppers
coming back to them.
At a product level, they have a renewed focus on more relevant casual categories right from product development upto retailing, ensuring
their brands are purposed to offer them with choices which are in vogue and in line with current lifestyle.
What is Raymond's take on the 'Atmanirbhar Bharat' campaign?
• Raymond is a proud Indian brand and in its 95 years of existence it has set many benchmarks of worldclass excellence. Raymond
has set up worldclass linen plant at Amaravati under the 'Make in India' initiative, which is a testimony to our belief of realizing
our vision to be leader in all fibers and segments.
Festive season and wedding season is around the corner. What are the expectations and how promising is the initial response
that are getting?
• It will be good because they are watching it week-on-week. They have seen an interesting trend this year and that during Shraddha
season, there used to be a company sale but this year they have seen that their sales of this Shraddha season are higher than last
year. So, the company have seen a week-on-week increase in September, itself.

10. Impact of the Pandemic on Telecom Sector
• Impact on Economy - In the ongoing COVID-19 scenario, the telecom sector is enabling 30%–35% of India's GDP, in addition to 6%
direct contribution to the GDP
• Financial Performance-Due to COVID-19 and work from home, Average Revenue Per User (ARPU) is expected to increase by 5%–
10% with growing data traffic exponentially
• Network Infrastructure - On account of increased load over the network, operators are collaborating with their competitors for tower
load sharing . To enhance the bandwidth, OTT players have reduced streaming quality from high definition to standard
• CAPEX Rebound-Mobile services EBITDA is expected to increase by 15% in FY21 .In addition, CapEx and OpEx are expected to
reduce in 2020 and will rebound quickly owing to 5G related initiatives.
What is the Impact of COVID-19 on Network Usage & Resilience?
Due to the lockdown, network usage grew steeply with large spikes reported by major telecom players.
Data Traffic- ▪ Peak internet traffic increased by more than 40% during COVID-19 lockdown; for example, Airtel reported 74.1% growth in
data traffic
▪ During weekdays, overall data traffic increased by over 73%, while 65% increase was registered on weekends
▪ Online video streaming increased by 120% and gaming by over 80%
▪ During peak hours, Internet Service Provider (ISP) traffic reported an increase of 38%
Actions Taken-Telecom operators have asked the Department of Telecom (DoT) to allot extra spectrum bandwidth on temporary
basis to overcome surge in demand . Vodafone, Airtel and Reliance Jio have set up war rooms to monitor networks and perform
critical operations to ensure uninterrupted mobile and broadband service.

11. What are the Implications of COVID-19 on Key Parameters?
Telcos are focusing on enhancing the existing telecom infrastructure and to leverage disruptive technologies for handling increased
data traffic
Factors Current Scenario Impact
Disruptive
Technologies
• Most of the service organizations have been
forced to shift towards work from home, virtual
meetings, and video calls, among others due to
the lockdown
• Schools and colleges are taking online classes
and examinations; the education sector is
witnessing a drastic change due to digitalization
• Integration of disruptive technologies in the telecom sector
would enable multiple application areas for other end-use
industries
• Technologies such as IoT, artificial intelligence and drone
surveillance are expected to observe surge in consumption
— For instance, in healthcare, patient monitoring and
telemedicine became the most prominent use case due to
COVID-19 pandemic
Telecom
Infrastructure
▪ Due to increased data consumption, operations
and maintenance of telecom networks have become
more complex, with only key personnel being
allowed in the network operations centers
▪ Operations and maintenance (O&M) of towers
has an impact on diesel fueling
▪ Due to restriction in movement, telecom operators are
maintaining and monitoring telecom sites by IP address,
which can be a cost saving option for them in the long term
▪ Telecom companies also focusing to integrate pre-emptive
services (provide alerts before the incidence happens) to
enhance network monitoring, tower maintenance and other
activities

12. Impact On Vodafone Ltd.
Vodafone reports Rs 25,460 cr Q1 loss as Covid-19 pandemic hits business
• The company, a joint venture between Britain’s Vodafone Group and billionaire Kumar Mangalam Birla’s Idea Cellular,
also reported a bigger quarterly loss, as it set aside 194.41 billion rupees for dues owed to the government.
• The company, India’s third largest telecom operator by subscribers reported its eighth consecutive quarterly loss of 254.6
billion rupees, compared with a loss of 48.74 billion rupees a year earlier.
• Vodafone Idea’s consolidated revenue from operations fell to 106.59 billion rupees during the quarter, compared with 112.70
billion rupees a year earlier.
• The lockdown imposed by the governments have shut offices and forced employees to work from home to prevent the
spread of the Coronavirus.
• Teething problems are also being faced by employees having no Wi-Fi broadband internet connection which is forcing them to
fall back upon their mobile data.
• Stepping up the supply to support work from home, telecom giant, Vodafone-Idea have increased per day internet data in
existing plans and also have devised a separate work from home plan.
• It started giving double the data in its new prepaid plans. For a recharge of Rs 249, the users will get 3GB Data every day
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.

13. Vodafone Group's five-point plan to keep everyone.connected and counter the impact of COVID-19
• “Vodafone can play a critical role in supporting society during this unprecedented time and that is
why we are announcing our five-point plan. A plan that ensures better outcomes for all citizens by
working more closely with governments.”
• “Through our networks, and our dedicated team, we will strive to ensure that people stay connected
to their family and friends, businesses can continue to run using remote working, our health services
get all the support we can deliver and students are able to continue their education virtually.”
Five-Point Plan
• Maintaining the quality of service of networks
• Providing network capacity and services for critical government functions
• Improving dissemination of information to the public
• Facilitating working from home and helping the small and micro businesses within our Supply Chain
• Improving governments’insights into people’s movements in affected areas.

14. Impact On Bharti Airtel Ltd.
Covid-19 to have little impact on Airtel's India business
• Airtel CEO Gopal Vittal, in a letter to subscribers, said that the telco was accelerating its network roll outs, upgrading quality
of service where possible and advancing investments to meet your requirements during the lockdown across the country due
to the COVID-19 or Coronavirus outbreak.
• Bharti Airtel's chief technology officer Randeep Sekhon separately recently said it was fully prepared to support any exigency
as its networks starts to operate in the Business Continuity Planning (BCP) mode at a time when the demand for bandwidth
surges and more people increasingly start to work from home to contain the spread of Covid-19 or coronavirus.
Bharti Airtel Q1 preview: Losses may narrow despite Covid-19 challenges
• Bharti Airtel to report a 66.5 per cent decline in its net loss in the June quarter while revenues may jump 15.3 per cent from a
year ago.
• The brokerage expects a modest quarter-on-quarter (QoQ) decline in Bharti’s India wireless revenues, even as it may rise 18
per cent on a year-on-year (YoY) basis, and a similar modest decline in EBITDA, while it may rise 30 per cent YoY.
It expects 2.3 per cent QoQ decline in India mobile revenues due to the COVID-19 impact, which is likely to have resulted in
lower recharge activity as physical channel remained shut in the initial period of lockdown and free talktime and balance
given to economically weaker section of customers during the 69 days lock down.

15. “We would look for management commentary on:
(1) ARPU trajectory beyond near-term Covid-19 impact, given its focus on up-trading (recently Bharti
announced priority network access for the higher-ARPU postpaid customers);
(2) Strategy to build digital content through partnership route; and
(3) indications on the next round of tariff hikes in light of Covid-19”
• Bharti Airtel announced special measures to assist low income group customers impacted by the Covid-19
crisis. The company has extended the validity period of more than 8 crore pre-paid connections until April
17. Further, it will also credit talk time of Rs 10 in these accounts. These benefits will be available to users
in the next 48 hours.
• Businesses are being impacted globally by extreme externalities including COVID-19, crude price decline
and currency volatility. Also, Indian telecom companies are facing significant payment demands arising
from adverse ruling by the Supreme Court on AGR dues. “We see COVID-19 having little impact on the
Bharti Airtel’s mobile and other businesses; rather, with many subscribers at home and working and
communicating virtually, the boost to mobile volumes is obvious. However, the significantly generous
allowances in voice and data mean limited benefit. But, crude price and currency volatility do pose risk to
Bharti Airtel.

16. Impact of the Pandemic on FMCG Sector
• Impact of Lockdown- The demand increased at first due to panic buying of essential items, which was
followed by supply chain, distribution and logistics disruptions .The growth of the sector decreased to 3.3%
in March 2020 from 6.4% in Jan–Feb 2020
• Implications on key parameters- Demand for health, hygiene and essential products increased compared
to non-essential items . Customers have largely been shifting to the use of e-commerce platforms for
purchases. Sector players are working towards improving their operating models, and the industry expects
the essential items market to recover faster than that of non-essential items.
• Challenges-Shortage of products, inflated prices, limitations to online delivery are some of the challenges
faced by consumers .Maintaining the safety measures, border controls, workforce shortage, disruptions in
supply chain are problem areas for retailers and manufacturers.
• Way Forward- The government majorly needs to work on managing supply chain and facilitating e-
commerce deliveries while FMCG players need to revamp their operating, financial and technology models
• Drivers and opportunities- Changed consumer preferences, demand for small players, supply chain
transformation and Make in India Programme are few of the opportunities that will become market drivers

17. Consumer Manufacturer Retailer Government
• Shortage of various essential
items due to panic buying by
other customers.
• Certain stores flocked with
people are putting the
consumers at a higher risk of
catching the virus.
• Online delivery is not
available in all regions due to
increased border controls.
• Shortage of products has led
to inflated pricing for certain
products
• Workforce shortage due to
migration and lockdown.
• Closure of stores and a lesser
demand for non-essentials
goods have led to excess stock
in inventory.
• Supply chain disruption due to
restrictions in the movement of
goods has made it difficult for
the manufacturers to meet the
demand.
• Dependence on China for
certain items has restricted
manufacturing/packaging for
some product items
OFFLINE- Maintenance of proper
hygiene by regularly cleaning and
sanitizing shelfs
• Ensure that the customers
maintain safe social distancing
standards
ONLINE- Increased online demand
disrupted the unready retailers
leading to coordination issues
between online and offline teams.
• Delivery restriction in most
areas due to border controls
• Quick response such as funds,
trainings, etc. to be provided in
order to ensure smooth
functioning of the supply chain
• Ensure that everyone follows
strict regulatory measures
when they go out to buy
essential products
• Ensure the supply of essentials
in all areas
• Requirement of funds
increased for urgent needs as
well as for direct money
transfers to laborers
What are the Key Challenges?
The sudden lockdown has thrown a variety of challenges for everyone from the government to
consumer

18. How Have the Regulatory Authorities Responded?
Different steps have been taken up and stimulus have been declared by the central and state governments in
order to lessen the impact of COVID-19 and maintain a balance in the FMCG sector
• Direct Benefit Transfer(DBT)- In order to help the financially weaker sections of the population, state
governments have provided DBT to accounts
• Relief Package- The central government has announced relief packages, which provide working capital
support, loan restructuring and credit terms alteration benefits
• Repo Rate Cut Down- In order to increase liquidity in the market and increase the spending power of
consumers, a cut down of repo rate by 75 basis points has been announced by RBI

19. Impact On Hindustan Unilever Ltd.
1. Impact of COVID-19 pandemic on the business, supply chain and demand.
• The adverse impact of COVID-19 in form of fractured supply lines and demand decline has been felt from mid- March.
• Our operations across manufacturing sites, distribution centres, warehouses and extended supply chain partner locations were
disrupted. Immediately following the nationwide lockdown, operations came to a near standstill and they were able to operate
at 5% of the pre- COVID normative levels. They were able to gradually improve the operations to 70% in the month of April
and have now been able to ramp –up our production to 80%-90% of normative levels.
• The company is closely observing the changes in demand patterns and consumer behaviours. They are staying close to
their consumer with frequent digital interactions and through social listening. They are seeing heightened consumer focus on
health, hygiene, and nutritional needs. With mobility restrictions, lockdown of retail spaces and fear of loss of income, the
impact on discretionary categories like hair care, skin care and colour cosmetics is more accentuated.
2.Estimation of the future impact of COVID-19 on operations
• The future impact on the business operations is difficult to assess at this point, as the situation is unravelling at a fast pace.
They are fully committed to working with the government and our partners to ensure that they overcome this crisis together.
Their portfolio of trusted brands, their financial stability and quality of leadership teams positions them well to deal with
the crisis and, for the changing worlds that will come afterwards.

20. 3. Steps taken to ensure smooth functioning of operations
• The company has moved at speed to support its multiple stakeholders, maintain operations through crisis and prepare for business in a
new normal. They have structured their immediate response into five areas: supporting their people, protecting supply, serving
demand, contributing to society, and maintaining their financial strength. The company utmost priority has been health, safety and
well- being of their people and partners. They have provided COVID-19 related medical covers to all their frontline employees, back
and end teams of distribution and depot staff. They are operating with shorter planning cycles, stepping up agility, reducing complexity
and working longer shifts to build resilience in their supply chain. The company has collaborated, unlocked partnerships and
implemented innovative delivery models to operate in conformity with the lockdown regulations. Their B2B sales ordering app Shikar
and their hyperlocal ordering platform of Humara Shop have witnessed increased adoption and usage by trade and consumers under the
lockdown.
4.Details on impact of COVID-19 on capital and financial resources, profitability, liquidity position, ability to
service debt and other financial arrangements, assets, internal financial reporting and control
• The company has a strong balance sheet and cash position. For the last several years, they have driven a strong savings agenda. They
are systematically reviewing all areas of cash generation and usage and re-evaluating all costs in the prevailing circumstances, so that
we can continue to invest towards the best opportunities. At the same time, they were continue to judiciously deploy credit in order to
support their partners and bring back normalcy in extended supply chain.
• The pandemic has imposed incremental operating costs on the business. While there will be some impact on their profitability in the
short term; however, it is difficult to assess the exact quantum at this stage. The company doesn’t foresee any incremental risk with
regards to its ability to service financial arrangements and recoverability of its assets including inventory and receivables. There has
been no impact on the internal financial reporting and controls of the company.

21. Impact On ITC Ltd.
COVID-19 impact | Revenue of ITC's mainstay business drops 6.5% YoY in Q4
• ITC Ltd, whose mainstay is the cigarettes business, on June 26 reported a 6.5 percent drop in its revenues
for the fourth quarter of FY20.
• The revenue of its hotel business dropped 8.6 percent on year in the fourth quarter of FY20.
• The hotel business had posted strong growth in segment revenue and segment results of around 19 percent
and 29 per cent, respectively, during the first nine months of the year. The momentum was sustained in
January and February, but the business was severely impacted by the outbreak of Covid-19 pandemic
towards the end of the year.
• "Just as the business environment was showing signs of an incipient recovery in the beginning of the fourth
quarter, the onset of Covid-19 pandemic changed the situation dramatically,"
• At the operating level, EBITDA margin, which was ahead of analysts’ estimates, expanded 30 basis points
to 38.4 percent, partly due to lower employee expenses and raw material cost. Earnings before interest, tax,
depreciation and amortisation (EBITDA) was down 8.9 percent to Rs 4,163.5 crore in Q4FY20 YoY.
• During the lockdown period, ITC launched two products under the Savlon brand - advanced hand
sanitizer Savlon Hexa and surface disinfectant spray.

22. ITC’S 12 WAYS TO FIGHT COVID-19
• Rs 150 Crore Covid -19 Contingency Fund created
• Rs 100 Crore pledged for #PMCARESFUND
• Reaching essential products across India
• Ramping up Savlon Hand Sanitizer production
• Providing food & hygiene products to the vulnerable
• Distributing cooked meals to the needy & migrant workers
• Working with farmers through ITC’s farmer network
• Collaborating with NGO’s to supply essential food items to the elderly and children
• Ensuring employee well- being and safety
• Supporting partners and encouraging frontline warriors of ITC
• Generating awareness through brand & business campaigns
• Providing food to the distresses & provisioning quarantine spaces- ITC Hotels

23. Covid-19 Impact: ITC’s foods business collaborates with Frozen Bottle to enter online dessert
space
• The offering from this partnership was launched in Bengaluru and Chennai and will be rolled out in phases in other
cities including Delhi, Hyderabad, Mumbai, Pune, Nagpur and Goa.
• ITC’s cookie brand Sunfeast Dark Fantasy has collaborated with milkshake maker Frozen Bottle to penetrate the online dessert
space as consumers pivot their spending online and stay at home in the new normal. The online-only range of chocolate desserts
and beverages made with the flagship cookies will be sold through food aggregators such as Swiggy and Zomato in the formats
of cake jars, milkshakes and sundaes.
• ITC Ltd had recently partnered direct selling company Amway India for distributing its new immunity beverage to stay
relevant and to compete with rivals Dabur, Coca Cola and PepsiCo in the breakfast market this summer. With the partnership,
Amway’s micro-entrepreneurs now sell the FMCG conglomerate’s packaged fruit beverage with immunity boosters that was
launched under its juice brand B Natural.
• ITC is the third largest foods company in India with representation in categories such as staples, spices, ready-to-eat, snack
foods, bakery, confectionery, juices and beverages.

24. THANK YOU