The world’s major lockdown makes thousands of people unemployed which leads to a huge decline in economic activity. And resulted in an aggregate economic slowdown in the last six years.
NSE NIFTY 50 index shows a huge decline of 15% compared to last year’s quarter. And it considered the worst dropdown that the Indian market faced after 2014 according to the report published by Bloom-berg compiled data. Around two-thirds of the company’s results has been published in March so far.
Communication, energy, and Industrials taped the elevated decline on an adjustment basis. The biggest lockdown and associated stay at the home mission as due to the spreading of the coronavirus kept almost 1.3 billion Indian population in their homes leads to a crash in business activities. Gold Sachs Group Inc. predicts a huge decline in gross domestic product a fall of 5 % in the financial year march 2021, which definitely would be a wide recession ever faced. Financial Analyst forecasts that NIFTY 50 can decline up to 13% since January over the next 12 months. Even though India begins a new shifting of this lockdown period.
The following are some of the findings put forward by Analyst the Impact of COVID 19 in the business sector.
1. Two out of Five NIFTY 50 listed firms shows a negative growth rate and prenominal decline in earning .the reason is that Lockdown leads to delay in payment and request for discounts.
2. Coming to Reliance Industries Ltd announced a profit jump of 40%.
3. Bharti Airtel Ltd has lost the position of India’s leading telephone service provider and reported a net loss in revenue of 52.4 billion rupees ($ 694 million).
4. Materials stock suppliers particularly cement Industries like Ultra Tech Cements Ltd and Shree Cement Ltd had the largest in the NIFTY 50.
5. Bajaj Fiserv Ltd has shown the steepest decline in net income.
Moving on to the Comments of Analysts:
There expects a decline in the growth of Telecommunications and Consumer staples and also expects a decline in capital expenditure.
June month is quite uncertain and there can be issues with both demand and supply.
