The Union government’s stimulus package to inject liquidity and improve credit flow is likely to cheer markets on Thursday, even as market analysts feel the impact of the policies will depend on their implementation.
Stocks are expected to rise, but uncertainties around mechanisms to fund the package may keep investors on tenterhooks. “A notable feature of the package is that it will not strain government finances beyond a point, since most of the funding is by way of credit guarantees by government.
In brief, a fine balancing act," said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services. The measures are likely to revive the vulnerable MSME sector which is the worst hit by the lockdown following covid-19 outbreak.