What brokerages make of the second tranche of economic stimulus package

SUMMARY

Finance Minister Nirmala Sitharaman on Thursday announced the second tranche of the economic package. The FM said that the government will supply foodgrains to eight crore migrant workers in the country for the next two months. This along with promises of affordable housing and loans for street vendors. The second tranche of announcements focused on migrant workers, small traders and farmers, self-employed people and street vendors. Here's what brokerages have to say:

By CNBC-TV18May 15, 2020 10:02:59 AM IST (Published)

HSBC on Economic Package: HSBC said that the direct fiscal cost of this second tranche of announcements is 0.1 percent of the GDP.

Citi on Economic Package: The brokerage said that the government must ensure supply side shock does not morph into a demand side shock.

Jefferies on Economic Package: Jefferies said that the government's focus will likely shift to economic recovery indicators and lifting of the lockdown after yesterday’s second tranche of announcements by the finance minister.

CLSA on Economic Package: CLSA expects the total hit to FY21 fiscal deficit may only be 0.56 percent of the GDP.

Credit Suisse on Economic Package: The brokerage said that the moves on affordable rental housing for migrant workers, Mudra loans and the National Portable Ratio Card systems are medium-term positives.