A day after the Prime Minister announced a Rs 20 lakh crore stimulus package to revive the economy, Finance Minister Nirmala Sitharaman laid out the details and the first tranche guarantees Rs 3.2 lakh crore of loans to MSMEs and Rs 75,000 crore to NBFCs and more measures to be announced over next 2 days.
Dhiraj Agarwal of Ambit Capital and Nilesh Shah, MD of Kotak Mahindra AMC spoke to CNBC-TV18 on the way forward for portfolio positioning looking at the stimulus and global cues.
Agarwal said, “It is still going to be a tough environment for the next year at least. The package is very welcomed and was much needed. But do not expect a quick ad v-shaped recovery because the whole impact on jobs and incomes in the current environment is very deep.”
Shah said, “This package is meant for economy and market is keen to interpret that. If the economy does well eventually markets will do well. The market will swing between hope and fear, between pessimism and optimism and we will see lots of volatility in the days to come.”