Reliance Industries continues to add to the festivities as it went on to declare itself net-debt free. However, analysts are pointing at certain loopholes.
The Indian stock market has once again resumed its journey upwards after spending a couple of days in a dilemma. But, with recent advances, the market is once again near the previous resistance. For the next week, a climb beyond 10,300 on Nifty would be a key technical indicator to track for the traders.
Reliance Industries added to the celebratory mood as it announced itself net-debt free. The company achieved this status nine months ahead of the schedule.
However, many analysts and credit rating agencies are raising questions over these claims. According to them, after including deferred spectrum liabilities and Capex creditors, the company’s net liabilities stands at Rs 2.4-Rs 2.6 trillion in FY20 while RIL has reported net debt of Rs 1.61 Tn.
A major complaint with fiscal package resolved:
The government's fiscal package worth Rs 20 Trillion was severely criticized for lacking demand-side measures. But PM Garib Kalyan Rojgar Abhiyaan could change all that. The scheme is designed to provide major demand-side stimulus which was the major bone of contention between the government and its critics.
The scheme guarantees 125 days of employment to the 60 lakh migrant workers, who have recently shifted to their hometowns. While it will tackle unemployment, it will also put money directly in the hands of the buyers in the form of wages.
Putting money in a buyer's hand in the form of salary is a far more effective way than providing subsidies and waivers on direct benefit transfers. New employment scheme aims to achieve this objective while also building rural infrastructure.
The scheme is also coming at a time when the market is looking optimistic towards economic recovery. In the upcoming week, revived sentiments could propel the market further.
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