SECOND COVID WAVE, HIGHER COSTS TAKE A TOLL

The quarter ended June 2021 was a disappointment for many sectors as hopes of a demand recovery seen in the January-march period were dashed by the second wave of Covid-19. A sharp surge in prices of commodities such as steel and energy hurt margins of firms across sectors, including automobile, FMCG and consumer goods, capital goods and infrastructure. Here’s an insight into the June quarter performance of some of India’s key sectors and companies therein. writes

Thequarterendedjune2021wasadisappointmentformanysectorsashopesof ademandrecoveryseeninthejanuary-marchperiodweredashedbythesecond waveofcovid-19.moreover,sharpsurgeinpricesofcommoditiessuchassteel andenergyhurtmarginsofcompaniesacrosssectors,includingautomobile, Fmcgandconsumergoods,capitalgoodsandinfrastructure,amongothers, comparedtothepreviousquarter.thecomparisonwiththeyear-agoperiodis lessmeaningful,giventhestringentlockdownslastyear.risingcommodity prices,however,meantgainsforproducersofmetals,whichhavebenefitedfrom continuousriseinglobalpricesonimprovingprospectsinmajorworld economies.likewise,increasedglobaldemandfordigitalservicesbenefitedthe country’sitservicescompanies.here’saninsightintothejunequarter performanceofsomeofindia’skeysectorsandcompaniestherein.