What brokerages make of govt's Rs 20 lakh crore economic stimulus package

SUMMARY

Prime Minister Narendra Modi on Tuesday announced a comprehensive economic package of Rs 20 lakh crore, which includes measures already announced by the union finance minister and the Reserve Bank of India (RBI) to push self-reliance and boost economy after the spread of coronavirus pandemic. Here's what top brokerages have to say:

By Pranati Deva May 13, 2020 8:46:45 AM IST (Published)

CLSA on Economic Package: As per the brokerage, the government should consider releasing strategy for fiscal rationalisation post COVID-19. They maintain forecast for another 150 bps rate cut to 2.65 percent this year.

Jefferies on Economic Package: Scale of the Rs 20 lakh crore economic package is impressive, the brokerage said, adding that focus of government support will be on MSMEs and agri sectors.

JPMorgan on Economic Package: Economic package worth 10 percent of GDP is much larger than anticipated, JPMorgan feels, but maintains that details will be key.

UBS on Economic package: The brokerage maintains its view that fiscal stimulus in FY21 will remain well below 5 percent of GDP, after the eco package announced yesterday.