Effect of COVID 19 Pandemic on Stocks in the Indian Market

COVID-19 Impact on Stock Market

The Indian stock market is exposed to global markets and is affected severely by several economic trends. There is a huge capital investment included by foreign investors in the Indian businesses, and amongst the Covid-19 disruptions on a global level below are the companies for the stock market enthusiast to watch out:

1. SBI Card: The State Bank of India earlier reported a net profit of Rs 346 crores at the end of the fiscal year which ended in March 2020. SBI card stocks have witnessed a sudden growth due to higher interest income in the first quarter of 2020, reportedly a 14 percent rise in the net profit reaching up to Rs 393 crores till July 30, 2020.
2. Indian Oil Corporation: Even in the second quarter, the Indian Oil Corporation (IOC) has witnessed downtrodden performance which has upset the growth of its stock in the market. Recently it received a “BBB” rating from Fitch Ratings on a negative outlook towards expecting a gradual recovery in margins and refining volumes.
3. InterGlobe Aviation: The Interglobe Aviation stocks have hit a major low in the market. Though It has been India’s largest airline for a long time, it will need to lay off a tenth of its working staff to survive all the disruptions on a financial scale due to the Covid 19 Pandemic.
4. Den Networks: Den Networks is a cable service provider that has seen a sudden growth in its profit margin of the first quarter of fiscal year 21 itself, which reached a 300 percent year-on-year profit to around Rs 59 crores from 15 crores around the same time in the preceding fiscal year.
5. Jubilant Life Sciences: The subsidiary branch Jubilant generics received the DCGI approval for its antiviral drug for the Covid 19 relief in India, and thus due to restricted sales of the “JUBI-R” in India, the stock prices of the Jubilant Life Services has seen a rise in the market. This medication will be available as a 100 mg injectable for the treatment of patients with severe Corona symptoms during an emergency.
6. Gateway Distriparks: Gateway Distriparks is a Logistics services company that will reportedly be launching its rights issued at Rs 150 crore on July 30, 2020. The Rights share sale is fixated at Rs 72 per share by the company.
7. ACC: ACC Ltd is a cement manufacturer which has seen a sudden low in its profit share, of about 40 percent decline reaching only around Rs 270 crores for the quarter which ended on June 30, 2020. The ACC Ltd stocks have been hit by the Covid 19 disruptions, though it was receiving a major profit of about Rs 455 crores in the same quarter of the preceding year.
8. Bharti Airtel and Vodafone Idea: Companies like Bharti Airtel, Vodafone Idea, and Tata Teleservices had to pay the AGR dues to the government. Recently, the Supreme Court has relaxed the measures regarding payment of the adjusted gross revenue by the telecom operators and has granted a 7-15 years window to clear all the dues.
9. NHPC: A joint venture of the state-run hydro giant is seen with the Green Energy Development Corporation of Odisha Limited (GEDCOM), in order to develop a floating solar energy project which can generate a 500 MW of energy.
10. Bank Earnings: All the banking associations like Bajaj Finance, Bajaj Finserv, Hindustan Unilever, Axis Bank will be announcing their earnings for the quarter which ended on June 30, 2020.

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