Quick snippets from ICRA's note on Covid-19 impact across Indian industries. Looks at it from 5 vantage points.
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1. Domestic Demand Slowdown
Govt. curtailments + risk aversion to have short-term repercussions on domestic demand; recessionary trends possible in longer-term
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1. Domestic Demand Slowdown
Govt. curtailments + risk aversion to have short-term repercussions on domestic demand; recessionary trends possible in longer-term
2. Global demand Slowdown
Rapid spread of pandemic across the globe leading to country-wise lockout, and fears of an impending recession to have impact
across multiple sectors.
Rapid spread of pandemic across the globe leading to country-wise lockout, and fears of an impending recession to have impact
across multiple sectors.
3. Supply Chain Impact
Supply disruptions of key imported raw materials in electronics, renewable energy, automobile and pharmaceuticals sectors
could adversely impact production even post lift of the lockdown.
Supply disruptions of key imported raw materials in electronics, renewable energy, automobile and pharmaceuticals sectors
could adversely impact production even post lift of the lockdown.
4. Foreign Exchange Rate Fluctuations
Rupee has crashed to record lows, adding dynamics of forex fluctuation. Double whammy for sectors with high share of forex cost. Losers and gainers.
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Rupee has crashed to record lows, adding dynamics of forex fluctuation. Double whammy for sectors with high share of forex cost. Losers and gainers.
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5. Commodity Price Impact
Global demand shock has sent commodity prices crashing, which would offer respite on raw material price front of manufacturers, while squeezing margins of commodity-oriented sectors.
Global demand shock has sent commodity prices crashing, which would offer respite on raw material price front of manufacturers, while squeezing margins of commodity-oriented sectors.
