Stock markets buoyant in mid-session: Sensex trades 1,000 points higher after FM announces Rs 1.70 lakh cr stimulus package; IndusInd top gainer

Two days after Prime Minister Narendra Modi ordered a 21-day nationwide lockdown to try to protect India’s 1.3 billion people from the fast-spreading coronavirus, Finance Minister Nirmala Sitharaman announced Rs 1.7 lakh crore ‘PM Gareeb Kalyan’ scheme to cushion the impact of the lockdown in wake of COVID-19 pandemic.

After the announcement, Sensex was trading over 1,000 points higher in afternoon session on Wednesday.

Paring early gains, the 30-share BSE barometer was up 1,055.11 points or 3.70 per cent at 29,590.89. It rallied over 1,500 points in morning session.

Similarly, the NSE Nifty stood 284.20 points, or 3.42 per cent, higher at 8,602.05 at 1430 hours.

IndusInd Bank was the top gainer in the Sensex pack, rallying up to 34 per cent, followed by Axis Bank, Bharti Airtel, L&T, Bajaj Finance and HDFC.

On the other hand, Maruti, Reliance Industries, NTPC and Sun Pharma were among the top laggards.

In an effort to cushion the economic blow of the 21-day lockdown to contain the Covid-19 pandemic, Finance Minister Sitharaman announced a slew of measures to help the citizens survive the crisis.

The Rs 1.70 lakh crore economic package will be implemented with immediate effect.

FM announces economic relief package. @nsitharaman says Package of Rs 1.7 lakh cr under the PM Gareeb Kalyan Scheme will immediately take care of poor@COVID19 #CoronavirusOutbreak pic.twitter.com/nhaoMzvyUb

— CNBC-TV18 (@CNBCTV18Live) March 26, 2020

The Pradhan Mantri Gareeb Kalyan scheme includes distribution of 5 kg of wheat or rice and one kg of preferred pulses free-of-cost every month over the next three months to 80 crore poor across the country and Rs 500 per month for next three months to as many of 20.5 crore women Jan Dhan Account holders.

The government will front-load Rs 2,000 paid to farmers in first week of April under existing PM Kisan Yojana to benefit 8.69 crore farmers.

The Finance Minister also said a Rs 50 lakh insurance cover will be given to healthcare workers who are at the forefront of dealing with the pandemic.

The Indian rupee appreciated further by 84 paise to 75.10 against the US dollar in intra-day trade after the announcement.

The number of COVID-19 cases climbed to 649 in India and the death toll rose to 13, with one death reported each from Gujarat, Tamil Nadu and Madhya Pradesh, according to the Health Ministry.

--With PTI inputs