INSUBCONTINENT EXCLUSIVE:
hour and of foremost importance.
But the market had anticipated a bit more, especially for India Inc
The Rs 1.7 lakh crore package did not have any stimulus for the hardest-hit sectors such as aviation, hospitality and banking, among
others.
While the stock market did hold intraday gains after the announcements, analysts said the gains were largely due to short coverings
sector-specific rescue measures
It expected the government to announce tax breaks, relaxation of credit norms, liquidity measures for micro, small and medium-sized
These are not times to worry about fiscal deficit, public debt or inflation
session 1,410 points, or 4.94 per cent, higher at 29,946
BSE Bankex, which was up 9.5 per cent earlier in the day, in fact cut gains to end 6.7 per cent higher.
On possible relief measures for the
travel and aviation sectors that are bearing the brunt of the lockdown, the Finance Minister said, "We will come back when something is
ready."
Aviation stocks ended mixed with InterGlobe Aviation ending flat after gaining 4 per cent intraday
SpiceJet managed to hold on to its 5 per cent gains
Most hotel stocks ended higher.
"There was no announcement on stimulating the economy
Industry-specific measures are likely to be announced in the next package
The government is prioritizing, it seems
Rs 2,000 in the first week of April, which will benefit 8.69 crore farmers, the FM said on Thursday.
Under the Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA), minimum wages will be increased to Rs 202 per day from Rs 182, she said
The move is going to add Rs 2,000 per month salary to 5 crore families.
Under Pradhan Mantri Garib Kalyan Ann Yojna, the FM announced 5 kg
of rice/wheat for next three months
This is in addition to 5 kg rice/wheat the government is giving at present
In addition, FM announced Rs 1 kg of pulses for the next three months via public distribution system.
Jaspal Bindra, Executive Chairman,
The measures announced were timely and appropriate
We anticipate the rest of the economic packages soon and hope that they are designed to overcome the disruptions in the rest of society,"
Bindra said.
Sameer Kalra of Target Investing said the government might address India Inc concerns in a staggered manner.
He expects some
sops for airlines and hotels soon
Kalra said RBI should not wait for April policy review to announce sops for banking sectors, which stares at delays in loan repayments as
restructuring may need to be considered to address the challenges in the financial sector arising from the likely spurt in delinquencies
the lockdown, the real estate industry needs liquidity with classification of developer loans as priority sector lending, lower risk weight
for developer financing and individual housing loans, higher loan to value ratios, additional tax incentives for mid-segment home buyers for
measures can collectively bring the residential sector back as the largest employment generator, and will have a positive impact on demand
of more than 100 industries.