The RBI’s Bazooka 2.0 was rather conservative as the Governor indicated a piecemeal manner of infusing liquidity. These were indeed steps in the right direction and have addressed major concerns for NBFCs, financial institutions such as SIDBI, NABARD, NHB, and the real estate sectors.
Banks have also received some relief on the NPA recognition and stressed asset reclassification front. A 25 bps reduction in the fixed reverse repo rate will definitely enable the banking sector to lend further and improve liquidity in the system.
The relief measures are definitely a big positive for the real estate, NBFCs, HFCs, banks, and agriculture sectors.
More fiscal measures are generally awaited at a time when uncertainty clouds sentiments and markets have always embraced any fiscal measures with open arms during such uncertain times.
Going ahead, it is expected that markets will remain volatile backed by low volumes and open interest.
Given that in the past weeks Indian bourses have aligned with global markets, a similar reaction is expected until the lockdown ends and then markets could read and react to the ground-level reality.
Hence, when global cues start endorsing positive sentiments the same may follow back home.
For Quick Trial – 91091 93302
or mail us here: info@moneyplantresearch.com
or visit https://www.moneyplantresearch.com
No comments:
Post a Comment