Street unimpressed by FM relief package; Sensex off 800 pts from high

NEW DELHI: BSE benchmark Sensex pared gains after rising over 1,500 points in Thursday's session even as the government announced a relief package to deal with the coronavirus crisis.

Finance Minister Nirmala Sitharaman announced a Rs 1.7 lakh crore stimulus package dubbed PM Garib Kalyan aimed at taking care of the poor, urban and rural workers, and those who need immediate attention. These sops included measures such as cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

BSE benchmark Sensex fell over 800 points from its day’s high to 29,293 while 50-share pack Nifty was trading 233 points up at 8551.

IndusInd Bank was up 35 per cent at Rs 407 while Axis Bank jumped 11.65 per cent to Rs 365. HDFC, BHarti AIrtel and ICICI Bank were among other gainers.

Bank Nifty that had surged to 20409 level during the day slid to 19935, up 4.71 per cent. At day’s high it was up 10 per cent. Nifty Private Bank was up 5.73 per cent and Nifty PSU Bank was up 0.31 per cent.

The Street was buzzing with talks of relief packages for the poor and jobless after the government announced a 21-day lockdown. In the morning session, banking stocks saw heavy buying which had lifted benchmark indices higher.

Under Pradhan Mantri Garib Kalyan Ann Yojna, FM announced addition 5 kg of rice or 5 kg wheat for the next five months. This is in addition to 5 kg or rice or 5 kg of wheat, the government is giving at present.

In addition, FM announced Rs 1 kg of pulse for the next three months via public distribution system. Under the cash transfer under DBT, eight announcements were made.