Finance minister’s announcements fail to cheer Sensex, Nifty as markets pare gains

The NSE Nifty 50 index, which had earlier in the session breached a psychologically significant 12,000 level last seen in February, reversed its course to trade 0.37% lower at 11,870, while the S&P BSE Sensex fell 0.27%.

Domestic markets pared the day’s gain during the afternoon trade on Monday as finance minister Nirmala Sitharaman announced measures, including LTC cash voucher scheme and Special Festival Advance Scheme, with an eye to boost consumer demand and bolster the coronavirus pandemic-hit economy.

The facade of BSE building is seen in this file photo in Mumbai. (PTI Photo)

Nirmala Sitharaman also issued an interest-free 50-year loan amounting to Rs 12,000 crore to states for capital expenditure, which they will have to spend before March 31. She also announced Rs 25,000 crore additional Capex expenditure for roads, defence infrastructure and expenditure and water supply on domestically produced capital equipment.

The NSE Nifty 50 index, which had earlier in the session breached a psychologically significant 12,000 level last seen in February, reversed its course to trade 0.37% lower at 11,870, while the S&P BSE Sensex fell 0.27%. The S&P BSE Sensex, which had hit the high of 40,905 earlier in the day, was trading around 40,555.74 levels at 2:26pm.

Meanwhile, a grid failure caused a widespread power outage in Mumbai and surrounding areas, though the National Stock Exchange and BSE, as well Mumbai’s international airport, said they were operating normally. Officials said power has now been restored to many areas of the city.

While the Reserve Bank of India (RBI) has delivered 115 basis points of interest rate cuts in response to the coronavirus pandemic and rolled out measures to boost liquidity and lending, experts have called for more fiscal stimulus to lift the economy from its worst contraction in four decades.

(With agency inputs)