The pandemic has sent the economy into a tailspin and governments all over the world are scrambling to restart their economies and revive demand. It has now become more important than ever to infuse liquidity in the hands of investors and NBFCs. Another issue close to the heart of small and large investors–is Mutual Funds (MFs), which give the common man an avenue to hedge inflation and also an alternative to direct investment in equities.
While several investors are holding back until the ramifications of the pandemic become clearer, a few distinct themes are emerging that could shape private equity deal activity as the new normal evolves. The pandemic has brought about an extraordinary combination wherein quality assets are available for cheap and investors are cash rich. The actions of fund managers over the next 18 months will likely define their returns for the next five to six years.
India’s energy sector has shown surprising resilience with supplies holding up admirably despite the global turmoil in financial and commodity markets. From oil wells and mines to nozzles and burner tips, the energy supply chain has remained steady. This, however, has come at a cost. Energy demand has dipped sharply as nearly one-third of the global population stayed indoors. To power growth in the post-COVID world, industry stakeholders will have to unlock operational efficiencies, adopt technological innovation and invest in renewable energy.
The automotive sector was bracing for a difficult year, even before colliding with the COVID-19 pandemic. Auto sales had been tepid for 12 to 15 months, when the outbreak stalled production and overall economic activity. The industry now faces concerns on both short-term liquidity as well as long-term growth in revenue and profitability. As lockdowns are gradually relaxed, automakers are restarting production and dealerships are recording sales again. The automotive industry needs to rapidly realign itself to the new realities of the post-COVID world that are expected to shape its road to recovery.
Tourism has been one of the worst hit sectors as people have remained confined to their homes. The pandemic has prompted a deep rethink on business models in a sector that has a disproportionately large contribution to jobs. Amidst the adversity, however, lies an opportunity to reimagine travel and tourism through the lens of sustainability.