The research report by State Bank of India (SBI) expects the Gross Domestic Product (GDP) to contract by 16.5% during the first financial quarter (April to June).
According to Times of India, earlier in May, the estimated contraction of GDP was between 20% to 30%. In addition, so far, over 1000 listed companies have announced results for the first quarter, and the final result (economic growth) will wreck the investors.
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The report by State Bank of India (SBI) suggests, segment-wise, public administration, and defense services combined could see a 15% growth. While electricity, gas, water supply, utility services' growth expected at 10%, and Agriculture, forestry, fishing at 9%.
Financial and Business services can face a 4.8% contraction. The most affected sectors would be Mining (-57.2%), manufacturing (-35.8%), trade, hotel, transport, communication, and broadcasting services (-35.2%), construction (-34.6%).
Soumya Ghosh, Cheif Economic Advisor of SBI Group told Business Standard that the revenue decline of listed companies had been far outstripped by cost rationalization, thereby not impacting margins. The worrying part of the story is that there has been a rapid surge in Covid19 cases in rural areas. The numbers for the first quarter are slated to be released by the end of August 2020.