Stimulus lifts mood
Hopes of another stimulus package from the government bolstered investor sentiment to help the rupee and the equity markets gain on Thursday.
The rupee soared 62 paise to settle at a two-week high of 76.06 against the dollar on Thursday. The Sensex surged 483.53 points, or 1.54 per cent, to close at 31863.08, a six-week high. The broader NSE Nifty advanced 126.60 points, or 1.38 per cent, to settle at 9313.90.
Prime Minister Narendra Modi will review the state of the economy with finance minister Nirmala Sitharaman and other senior officials of the ministry on Friday.
Officials said the meeting would focus on boosting rural income, issue of migration and problems faced by the MSME sector. It could also discuss a stimulus package, which is expected to focus on MSMEs, aviation and auto.
Union MSME minister Nitin Gadkari on Thursday said the Centre is working on additional relief measures for the MSME sector keeping in mind the tight liquidity conditions faced by the industry on account of the lockdown.
“I have suggested to my department to find out a scheme of Rs 1 lakh crore under which if there is a pending bill, we can reimburse that amount. For interest cost we would probably find some solution.
“Some of the cost will be borne by the government, some by industry and some by the supplier and we will take the guarantee for that and the MSME will get the payment,” Gadkari said at a webinar organised by Bharat Chamber of Commerce on Thursday.
Forex traders said investor sentiment also strengthened after the RBI said it would undertake additional purchase of government securities.