Mumbai: When the Finance Minister (FM) Nirmala Sitharaman announced a much needed financial reliefs, it gave the message to the financial markets that the Central Government recognises there is an urgent need to come to the aid of important sectors of the economy. This announcement itself is a positive signal and will go a long way help to ease concerns on growth slowdown, feels market participants.
Vishal Kampani- Managing Director, JM Financial Group said, “With such a prompt response, the government has shown a superb understanding of the issues plaguing the economy and the NBFC sector. The government has made it clear that it will extend all measures to ease the liquidity situation. The most important takeaway from today's announcement is that the initiatives to provide additional liquidity support to NHB for housing loans, ease corporate finance accessibility for housing projects. This will help NBFC sector tide over the liquidity stress to a greater extent”.
Ashish Shanker,Head- Investment Advisory, Motilal Oswal Private Wealth Management, “It is very heartening to hear the finance minister patiently address issues relating to capital markets and industry. This should help stir positivity and gradually bring back animal spirits. The steps taken to infuse liquidity in the banking and NBFC sector should help alleviate stress in the system and set in motion the recovery process”.
Garima Kapoor, Economist, Elara Capital said, ““The main takeaway of today’s announcements by the Finance Minister is that they are aimed at restoring confidence and tackle the challenges of weak demand. Measures that aim at accelerating the payment of dues of government to private sector entities, ensuring timely refund of GST refunds to MSMEs would in particularly help to resolve the liquidity crisis in the economy. Withdrawal of surcharge on FPIs and domestic investors would help in alleviating the tax burden on investors in capital markets. Likewise, quicker transmission of rate cuts, faster recapitalisation of banks and external benchmarking of rates are likely to aid credit off take”.
Vijay Chandok – MD & CEO, ICICI Securities said, “Slew of measures revealed by FM would act as a major stimulus for the economy and provide an all-round sentiment boost. These steps are on rationalizing of taxes and injecting liquidity into the system. The measures are expected to aid both - consumption and investments as borrowing cost will come down. With withdrawal of surcharge on key investor categories like FPIs, inflows into the market is expected to improve. Some key job creating sectors like auto and real estate, who have been under pressure lately, have been given a good boost, which is a welcome step.”