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MOSL: Morning India (9/April/20): 1. InterGlobe Aviation (Keep your seat belt fastened!); 2. Capital Goods; 3. Titan Company; 4. Marico; 5. Info Edge; 6. MAS Financials; 7. Technology; 8. Expert Speak (a. Consu

Morning India (9/April/20):

Today’s top research idea
InterGlobe Aviation: Keep your seat belt fastened!
** As the nationwide lockdown end date approaches near (15th Apr'20), many airlines have started accepting advance bookings. In this note, based on our interactions with various industry experts, we highlight various issues/challenges that INDIGO might face on its flight back to normal operations.

** According to our airfare tracker, post the lockdown, domestic operations (mainly on key/metro routes) should see a staggered start to operations. Indian carriers are using a hawk-eyed approach in resuming domestic operations; however, the rate of PLFs will be a key concern. The tracker also suggests that YTD average yield across metro routes has declined by ~30% for both 30-day/15-day ticketing window. For Indian carriers, typically 1Q is the strongest period while 2Q is a weak quarter. In this fiscal, as the lockdowns/shutdowns are playing out in 1Q, we expect gradual improvement in the dynamics of the Indian aviation industry only from 3QFY21.

Piping hot news
To help small firms, India seen unveiling second coronavirus stimulus worth $13 billion
A second stimulus package India is poised to announce in coming days will be worth around Rs 1 lakh crore ($13 billion) and focus on help for small and medium businesses weathering the coronavirus outbreak, two senior officials said on Wednesday. Last month, India outlined a Rs-1.7-lakh-crore($22.6-billion) economic stimulus plan providing direct cash transfers and food security measures to give relief to millions of poor hit by an ongoing 21-day nationwide lockdown.