Published 16:01 IST, May 14th 2020
Sensex loses 885 points ahead of FM Sitharaman's second tranche of economic reforms
A day after Finance Minister Nirmala Sitharaman announced the first set of liquidity reforms to boost a slumped Indian economy, Indian market indices lost gains
A day after Finance Minister Nirmala Sitharaman announced the first set of liquidity reforms to boost a slumped Indian economy, Indian market indices on Thursday, lost all the gains from Wednesday after PM Modi's Rs 20 lakh crore economic package. Sensex lost 885.72 points to end at 31122.89, while Nifty lost 240.80 points, ending at 9142.75. About 968 shares have advanced, 1324 shares declined, and 153 shares are unchanged.
Sensex and Nifty crash
Why is the market crashing?
Inspite of Sitharaman's 15-step announcement to boost Micro, Small, and Medium Enterprises, markets have lost their gains as experts believe more clarity is required from the Centre as to the implementation of the schemes. Moreover, with India's rising coronavirus cases, markets see more instability in the future and an extended, yet relaxed lockdown as announced by PM Modi. Inspite of the relaxations announced in India and globally to kickstart the global economy, markets around the world have displayed weak growth, hitting Indian indices too.
PM Modi's Rs 20.lakh crore booster
On Tuesday, PM Modi announced a Rs 20 lakh crore economic package - including the previous menetary package and the liquidity measures announced by RBI till date (amounting to 10.26 lakh crore) to kickstart Indian economy's growth. Following the Prime Minister's announcement of a self-reliant India, FM Sitharaman on Wednesday announced reforms that involved 3 lakh crore collateral-free automatic loans for businesses, Rs. 50,000 crore equity infusion through MSME Fund, redefining 'MSME', disallowing global tenders upto Rs 200 crores, Rs.30,000 crore liquidity facility for NBFCs/HFCs/MFIs, Rs.90,000 crore liquidity injection for DISCOMs among a few. The next slew of announcements are scheduled in the coming few days, before Lockdown 4.0 is imposed.
Updated 16:01 IST, May 14th 2020