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Below is the Views On Market commentary : Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd
“Indian equity markets gained for the third consecutive day, posing best three day rally since May 2009, as FM announced a comprehensive economic package to cushion the impact of the coronavirus outbreak in the country. Sensex rose 1411 points to close at 29,947 levels (+4.9%) while Nifty50 rose 324 points to close at 8,641 levels (+3.9%). The broader market also participated with both Nifty Midcap 100/Nifty Smallcap 100 up 3.4%/3.2% respectively. All the sectors ended in green with Private Banks being the biggest gainer, up 8.3%, followed by Realty (+7.3%). VIX further corrected 8.4% to 71 levels. The global sentiments got boosted as the US Senate and White House reached an agreement on a $2 trillion stimulus package for the US economy.
Two days after the government ordered a 21-day nationwide lockdown to contain the spread of the virus outbreak, FM today announced an economic package worth INR1.7 lakh crore under 'Prime Minister Gareeb Kalyan Scheme', aiming to protect the poor from the ongoing COVID-19 crisis. It would entail both cash transfer and food security. PM Garib Kalyan Anna Yojana will cover ~80 crore poor people while direct cash transfer would include farmers, MNREGA, poor widows, pensioners and divyaang, women (with Jan Dhan Yojana, covered by Ujwala scheme, in self-help groups covered by livelihood missions), organized sector workers (registered with EPFO), construction workers and those under district mineral fund coverage. It also includes INR50 lakh insurance per health care worker as a medical insurance cover for them for three months.
Market has cheered this fiscal package and now expect relief measures for Corporates, Banks, SMEs, start-ups, etc. It would continue to be highly volatile and would track global markets along with the trend in coronavirus cases globally and locally.”
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