The stock market is either expecting a bumper fiscal package or seems no longer in need of it.
However, despite the recent highs, a lot rides on an effective stimulus package to drive the direction the market would take over the long term.
Dr Ashima Goyal, Member of Prime Minister’s Economic Advisory Committee, has recommended an initial package, 3% of GDP size with a calibrated and target specific approach.
While the package is expected to be formalized soon, the party continues on D-street. Sensex gained 1.17% to close at 32,224.52 while Nifty closed above 9,350 intraday. Small & Midcaps continued its good run. Both the indices closed 0.74% and 1.30% respectively. IndusInd Bank (up 14.89%), Bajaj Finance (up 9.00%) and HDFC (up 7.81%) were the top gainers while Sun Pharma (down 3.26%), HCL Tech (down 2.48%) and IOC (down 2.27%) were the major laggards of the day.
Teji Picks of the day
IndusInd Bank (NSE: INDUSINDBK):
Profit lowered by 77% QoQ due to higher provisioning. Provision coverage ratio improved to 63.34 % from 52.53 % QoQ. Recoveries remain healthy with a collection of more than 95% in March despite disruptions.
Pidilite Industries (NSE: PIDILITIND)
The stock is expected to gain positive momentum as operations in two facilities have partially resumed.