Second wave of Covid-19 will delay earnings recovery of India Inc: Moody's
Published On: Monday, May 17, 2021 | By: Team KnowMyStock
The massive second wave of coronavirus seen in India will delay earnings recovery for Indian companies, rating agency Moody's said today(17th May 2021). "The sharp rise in infections will disrupt earnings, recovery recorded by companies over the past six months," it said while adding that prolonged and wider lockdown will have a more severe effect on earnings recovery. However, the rating agency sees a limited impact of second-wave lockdowns on economic activity so far. Moody's further said restrictions on movement and lockdowns in several parts of the country will lead to weaker consumer sentiment and will hit housing and automobile sales. It said the slowdown in the construction sector will make a dent in cement demand in India and also sees transportation-fuel demand to take a hit temporarily.
The ratings agency said it expects demand for telecom and IT services to remain strong.
Moody’s had last week India’s gross domestic product (GDP) forecast for FY22 to 9.3 per cent from an earlier projection of 13.7 per cent.
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