Capital market participants adopted a cautious stance after Finance unveiled the first set of incentives as part of the ₹20 lakh-crore stimulus package.
The stock markets closed for trading, the FM announced manysops for MSMEs, real estate, non-banking finance companies (NBFCs) and power distribution companies.
Market experts, however, cautioned that while certain sectors could see some amount of upswing, an overall market rally is unlikely to happen.
Equity markets are expected to appreciate the measures and not celebrate it with a big surge due to two key uncertainties, including mechanism to fund the relief package, and quantum of immediate outflow from the government coffers.
Incidentally, the cautious view also came from the fact that the recent past had seen regulators and the government announce waivers and liquidity infusion plans for certain sectors but the market had been largely trading weak due to the growing number of COVID-19 cases.