Mark to Market

31: Why the markets were lukewarm to the Rs. 20 trillion economic package

Episode Summary

Initially, the Indian stock markets were excited about the Rs20 trillion economic package. In fact, the pre-opening rates had suggested a 5% jump in the markets. However, markets rose only 2% on Wednesday, with the initial excitement wearing off. In absolute terms, BSE’s total market cap rose Rs. 2.3 trillion, as compared to the Rs5.5 trillion rise pre-opening rates had suggested. So what caused the excitement to ebb? Find out here.

Episode Notes

Initially, the Indian stock markets were excited about the Rs20 trillion economic package. In fact, the pre-opening rates had suggested a 5% jump in the markets. However, markets rose only 2% on Wednesday, with the initial excitement wearing off. In absolute terms, BSE’s total market cap rose Rs. 2.3 trillion, as compared to the Rs5.5 trillion rise pre-opening rates had suggested. So what caused the excitement to ebb? Find out here.