Winds of change Finance Minister Nirmala Sitharaman unveiled the much-awaited stimulus package this past weekend. The popular word on Street remained that such a move would cheer investors, but most brokerages believe that any recovery in the domestic economic will be some time away. Take a look:



JM Financials > In a not so unanticipated move, Fin Min announced measures to revive economy

> Important to note that Govt is not turning a blind eye to the slowdown

> Preponnement of demand in autos (PVs from fleets, LCVs) can help reduce excess inventory

> Faster payment of GST refunds to MSMEs can help address some amount of liquidity concerns

> More measures seem to be coming to revive the real estate sector

> Not far away from fundamental buying levels if there are no big cuts to earnings from here

> Amongst segments of the markets, the small/midcap is at a discount to large cap



Motilal Oswal > Booster from FM’s desk has come, more to follow

> Comprehensive package to lift growth and sentiment from Govt announced

> Will serve well to boost sentiment, which has been impaired of late due to economic slowdown

> Govt willingness to take feedback and act promptly may offset the pessimistic market narrative

> Timing-wise, it has come just ahead of the beginning of a long festival season

> Expectations of more measures over the next two weeks will likely drive a short-term bounce

> Sticking to fiscal prudence will ensure that the bond yields may ease from current levels

> Corporate Banks, NBFCs, Autos are the key beneficiaries of the measures unveiled



Kotak Securities > Several positive announcements by the government to improve sentiment

> Surplus liquidity and repo-linked interest rates may lead to lower interest rates

> Lack of fiscal stimulus may disappoint sections of the industry and market

> Structural reforms can turn an adverse global situation into an once-in-a-lifetime opportunity

> China-US trade issue escalation will hurt global growth and investment mood

