Real estate & steel, worst hit by coronavirus

Real estate, airlines, auto dealers, gems & jewellery and steel are the sectors that are expected to be the worst hit and have the least resilience in the ongoing Covid-19 crisis. While telecom, fertilizer, FMCG, pharmaceuticals and food industry will see a low impact and have higher resilience according to a report by ratings agency Crisil. Meanwhile, ratings agency Moody’s revised the outlook on India’s banking system to negative along with 12 others in the Asia-Pacific region, citing coronavirus related disruption. “A sharp decline in economic activity and a rise in unemployment will lead to a deterioration of household and corporate finances, which in turn will result in increases in delinquencies,” Moody’s said. Moody’s affiliate ICRA said that asset quality stress for lenders is likely to reflect with a lag of 1-2 quarters after the removal of the moratorium.