Equity markets may cheer Rs 20-trn stimulus package; SGX Nifty jumps 5%

Following the announcement of a Rs 20-trn package, the Nifty contracts traded on the SGX shot up 5%, while the American depository receipts (ADR) of Indian companies gained between 3% and 10%.

Equity markets are expected to cheer the much-awaited stimulus package announced by Prime Minister Narendra Modi on Tuesday. Gains, however, could be capped as investors will wait for finer details before upping the wager.

Following the announcement of a Rs 20-trillion package, the Nifty contracts traded on the SGX shot up 5 per cent, while the American depository receipts (ADR) of Indian companies gained between 3 per cent and 10 per cent. Experts said the headline number by far exceeded estimates but it remains to be seen how much of it would be actual fiscal boost and how much of