Markets Applaud Modi’s Rs 20-Lakh Crore Stimulus, Sensex Jumps 1,093 Points

The markets surged on Wednesday after the Prime Minister announced stimulus package worth Rs 20 lakh crore and extension of the fourth phase of the lockdown with new rules.

Markets have cheered the new stimulus package announced by Prime Minister Narendra Modi to revive the economy as the benchmark indices opened on a firm note on Wednesday Photo/ANI

New Delhi: Markets have cheered the new stimulus package announced by Prime Minister Narendra Modi to revive the economy as the benchmark indices opened on a firm note on Wednesday with Sensex claiming 1470 points to open at 32,841.87 while Nifty advance 388 points to open at 9,584.20. The PM announced the much-anticipated stimulus package of ₹20 trillion for businesses and workers who have been reeling under the impact of Covid-19 induced lockdown. Among the top gainers in the BSE 30 stock index ICICI Bank, Maruti Suzuki and Hero MotoCorp gained 6-7 percent while TCS, Sun Pharma and Nestle India remained the top laggards. On Tuesday, the markets ended weak tracking global equities and concerns over the second wave of coronavirus infections. The benchmark Sensex slipped 190 points at 31,371 while Nifty closed 42 points at 9,196. Shares of Reliance Industries (RIL) were down 6 per cent to Rs 1,483 on the BSE on Tuesday s a result of heavy volumes on profit booking. Asian equities opened mixed in the opening trade on Wednesday as concerns of covid-19 infections surfacing again gained ground in China. Japan’s Topix index fell 0.7 per cent, Hong Kong’s Hang Seng moved 0.1 per cent up and Shanghai Composite slipped 0.3 per cent. Meanwhile, US stocks sank on Tuesday as investors eyed the latest efforts on easing coronavirus-tied lockdowns. The Dow Jones Industrial Average fell 457.21 points, or 1.89 per cent, to 23,764.78. The S&P 500 decreased 60.20 points, or 2.05 per cent, to 2,870.12. The Nasdaq Composite Index was down 189.79 points, or 2.06 per cent, to 9,002.55, Xinhua reported. Also Watch: All the 11 primary S&P 500 sectors remained weak with real estate ending 4,25 per cent down, the top laggards among the sectors. The markets remain wary as more US states are chalking out plans to relax Covid-19 induced lockdowns. New York will end its statewide closure on May 15 by reopening three regions where the outbreak has shown signs of mitigation, Governor Andrew Cuomo said. Some low-risk businesses including landscaping and gardening, as well as recreational activities such as tennis will also resume on May 15, said the governor. On the data front, US Consumer Price Index (CPI) declined 0.8 per cent in April, the largest monthly decline since December 2008, the US Bureau of Labor Statistics reported on Tuesday. The so-called core CPI, another closely watched measure of inflation that strips out food and energy, fell a record 0.4 per cent last month, said the bureau. (With inputs from IANS)