Markets retesting March 2020 low is within the realms of possibility

The business sectors mobilized pointedly from around 7,500 levels on the Nifty50 found in March to more than 10,000 till as of late. The assembly was unjustifiable, as there was no adjustment in basics. There was nothing that recommended that things—as far as likely change in monetary essentials or the quantity of Covid-19 contaminations—have improved significantly for the 35-40 percent up move in the S&P BSE Sensex and the Nifty50 records. The gouge on India Inc's. profit was obvious in organizations' March 2020 quarter results however the across the nation lockdown affected only a couple of days of that month. The numbers have not been amazing and at times have been underneath desire.

We truly don't have the foggiest idea when Covid-19 contaminations will top or when the circumstance will become typical once more. Regardless of whether we accept that things will begin to standardize in the following couple of months, monetary recovery will take a great deal of time. Development will be obvious just in the following financial (FY22) and FY21 will be a terrible year for the economy and India Inc. The business sectors should grapple with this and afterward value chance appropriately. Parts, for example, diversion, avionics, and accommodation will take more time to recuperate. They may even get insignificant for business sectors, as there won't be profit that can enable them to develop. Individuals will be frightened of gathering at a spot in enormous numbers. This will affect showcase feeling. Indeed, even the quick moving customer merchandise (FMCG) area won't restore right away. There can be some antagonist purchasing, yet that ought to likewise flame out.

Parle may cut up to 10,000 jobs, slash production as slowdown bites

Current Affairs

Parle Products Pvt Ltd, a leading Indian biscuit maker, might lay off up to 10,000 workers as slowing economic growth and falling demand in the rural heartland could cause production cuts, a company executive said on Wednesday.
A downturn in Asia's third-largest economy is denting sales of everything from cars to clothing, forcing companies to curtail production and raising hopes that the India government will unveil an economic stimulus to revive growth.
A sharp drop in Parle's biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai.
"The situation is so bad, that if the government doesn't intervene immediately ... we may be forced to eliminate these positions," he said.
Parle, founded in 1929, employs about 100,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants.
Shah said demand for popular Parle biscuit brands such as Parle-G had been worsening since India rolled out a nationwide goods and services tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as Rs 5, or 7 cents a pack.The higher taxes have forced Parle to offer fewer biscuits in each pack, hitting demand from lower-income consumers in rural India, which contributes more than half of Parle's revenue and where two-thirds of Indians live.

"Consumers here are extremely price-sensitive. They're extremely conscious of how many biscuits they are getting for a particular price," Shah said...Read More