Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd on Prime Minister's announcement and how it will impact the Stock Market.
"The announcement of Rs.20 lakh crore special economic package by the Prime Minister, is definitely a welcome step in the right direction, and it was due for quite some time now. Markets have also taken it positively with the benchmark indices up by more than 2.5%, giving a thumbs up to this announcement. And with the economy in complete disarray post COVID-19, big & bold steps were definitely required to instill confidence. However, the major challenge for the government remains as how to balance expenditure with revenue, else our fiscal deficit could go out of hand, which in turn could lead to our sovereign rating being downgraded.
But at the same time, positives measures are required to save many industries, which are on the verge of collapse, like aviation, hospitality, travel and tourism and many others. But we will have to wait for the detailed announcements from the Finance Minister, which will give clarity on the finer details of the economic package, and what is in store for various sectors. But nonetheless, this is a very welcome step by the government and will help India progress on the path of self-reliance."