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What brokerages make of the first tranche of economic stimulus package

Updated : 2020-05-14 08:43:41

Finance Minister on Wednesday unveiled credit line worth Rs 6 lakh crore for MSMEs, NBFCs, MFs, and discoms as the first tranche of measures to combat the economic damage caused by the novel coronavirus pandemic. The measures are a part of a Rs 20 lakh crore fiscal and monetary package announced by Prime Minister Narendra Modi on Tuesday to support the economy, which has been battered by a weeks-long lockdown to curb the virus’ spread. Here's what brokerages have to say about the first part of measures:

 CLSA on Economic Package : As per the brokerage, of the Rs 6 lakh crore, only 2 percent will hit the FY21 fiscal deficit. However, it added that the package may not be enough to satisfy elevated investor expectations.
CLSA on Economic Package: As per the brokerage, of the Rs 6 lakh crore, only 2 percent will hit the FY21 fiscal deficit. However, it added that the package may not be enough to satisfy elevated investor expectations.
 HSBC on Economic Package:  Fiscal implication in the current year is likely to be about 0.1 percent of GDP, said the brokerage. It believes the fiscal deficit will come in at 10 percent of the GDP and of this, the stimulus component will be around 5.5 percent.
HSBC on Economic Package: Fiscal implication in the current year is likely to be about 0.1 percent of GDP, said the brokerage. It believes the fiscal deficit will come in at 10 percent of the GDP and of this, the stimulus component will be around 5.5 percent.
 Credit Suisse on Economic Package:  The brokerage said that much of this package is about credit flow to MSMEs directly or indirectly. It expects the remaining Rs 7 lakh crore package to have a higher proportion of fiscal support.
Credit Suisse on Economic Package: The brokerage said that much of this package is about credit flow to MSMEs directly or indirectly. It expects the remaining Rs 7 lakh crore package to have a higher proportion of fiscal support.
 Morgan Stanley on Economic Package:  The measures announced should help unclog the financial sector, said the brokerage. The measures will reduce risk aversion for banks, it added.
Morgan Stanley on Economic Package: The measures announced should help unclog the financial sector, said the brokerage. The measures will reduce risk aversion for banks, it added.
 JPMorgan on Economic Package : The first installment focuses on credit guarantees to MSMEs and NBFCs, it said, adding that direct cash outflow from the first installment is 0.1 percent of GDP.
JPMorgan on Economic Package: The first installment focuses on credit guarantees to MSMEs and NBFCs, it said, adding that direct cash outflow from the first installment is 0.1 percent of GDP.
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