The benchmark indices, the Nifty and the Sensex, have opened this morning with gains after yesterday’s massive slump of well over 2%.
Join us as we follow the top business news through the day.
Sensex, Nifty rebound in early trade; bank, IT stocks take charge
Some gains for the indices after yesterday’s slump.
PTI reports: “Equity benchmark BSE Sensex rebounded 320.33 points to trade at 40,048.74 in opening deals on Friday, led by intense buying mainly in banking and IT counters.
Likewise, the broader NSE Nifty surged 86.75 points or 0.74 per cent to 11,767.10 in early trade.
On the Sensex chart, IndusInd Bank, Tata Steel, Infosys, ONGC, Kotak Bank, NTPC and Bharti Airtel were among prominent gainers.
Of the 30 Sensex constituents, 27 were trading in the green.
Asian shares were trading on a mixed note amid growing fears about resurgence of coronavirus cases in some countries.
On Thursday, the Sensex had plummeted by 1,066.33 points or 2.61 per cent to end at 39,728.41. The broader NSE Nifty had crashed 290.70 points or 2.43 per cent to 11,680.35.
Foreign institutional investors turned net sellers in the capital market as they offloaded shares worth Rs 604.07 crore on Thursday, exchange data showed.”
‘Latest stimulus to have minimal growth impact’
The government’s latest fiscal stimulus measures will have a minimal impact on India’s growth prospects, rating agency Moody’s Investors Service said on Thursday, stressing that their ‘small scale’ is actually a credit negative as it reflects the country has ‘limited budgetary firepower to support the economy’.
On Monday, Finance Minister Nirmala Sitharaman had announced a leave travel cash voucher scheme and an interest-free festival advance of ₹10,000 for all central government employees, to spur consumer demand. She also announced a ₹25,000 crore enhancement in the Centre’s capital spending and a 50-year loan facility worth ₹12,000 crore for States to expand capital expenditure.
Moody’s expects India’s GDP to shrink 11.5% in 2020-21, so the 0.5% of GDP gain expected by the government from these stimulus measures will provide only ‘a small boost’, it pointed out. The package amounts to a fiscal cost of 0.2% of real GDP this year, as per the rating agency.