D-Street Talk podcast | Rs 20 lakh cr stimulus not enough to push Nifty50 above 10,000: Jyoti Roy

The wait is over! The big stimulus package which most of the market participants were waiting for is finally here, but the Rs 20 lakh cr stimulus package might not be enough to push Nifty back above 10,000, says Jyoti Roy, Deputy Vice President and Equity Strategist, Angel Broking Ltd in a podcast ‘D-Street Talk’ with Moneycontrol.

The Government has announced additional stimulus measures of Rs 6 lakh cr on Wednesday on top of Rs 10 lakh cr. announced so far with more announcements which are likely over the next few days, he said.

Wednesday's package tried to address the liquidity issues for the MSMEs, NBFCs, and power distribution companies which is positive for banks and NBFCs.

He further added that though more announcements are expected from the FM over the next few days we believe that the total fiscal & monetary package of Rs 20 lakh cr. (~10% of GDP) may not be enough and more needs to be done.

“We don't think that these stimulus measures are unlikely to take Nifty above 10,000. We need to take into account what is happening in the global economy - the US economy turnaround or the Dow rallying significantly from the current level which may pull the Nifty above the 10,000 marks,” he said.

The market may not see a vertical kind of movement that we have seen in the past, it is more likely to be a slow grinding kind of movement.

Our investment strategy is more sector-specific. He advises investors to focus on sectors where there is revenue visibility like FMCG, pharma, telecom and to some extent IT as well.

On the other hand, banks are likely to remain under pressure for another 2-3 quarters. “It is going to be difficult for the market to breakout and sustain above the 10,000 mark. We think that we are still in that mild kind of bear market and markets will continue to grind lower,” says Roy.

(Tune in to the podcast for more)