Second Covid-19 surge will drag earnings recovery for India Inc: Moody's

Automobile, housing sales to be hit; drop in fuel demand seen; Steel firms to see limited impact on output despite O2 diversion

The sharp rise in Covid-19 infections under the second wave will disrupt the earnings recovery of companies recorded over the past six months. A prolonged and wider lockdown will have a more severe effect on earnings recovery, according to Rating agency Moody's.

India's largely regional and less stringent lockdowns amid the second wave of coronavirus cases so far have had a limited impact on economic activity.

If infections fail to decline to more manageable levels, however, lockdowns may be prolonged and widen, which will impact companies' earnings recovery more severely.

Movement restrictions and weaker consumer sentiment under the second virus wave will hit