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Market may open lower

14-May-20    07:49

Indian indices likely to open lower on weak global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 142 points at the opening bell.

Finance Minister Nirmala Sitharaman briefed the media on Wednesday (13 May) to share details of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi on Tuesday to tackle the impact of coronavirus.

The government will provide collateral-free automatic loan up to Rs 3 lakh crore for the Micro, Small & Medium Enterprises (MSME) with a time frame of 4 years with a 12 month moratorium period. 45 lakh MSMEs will benefit from this scheme. Eligible must have turnover of Rs 100 crore.

The government will facilitate provisions of Rs 20,000 crore as subordinate debt for stressed MSMEs.

FinMin also announced Rs 50,000 crore equity infusion for MSMEs (who may be doing viable business but need handholding because of current situation) through Fund of Funds; to be operated through a Mother Fund and few daughter funds. This will help to expand MSME size as well as capacity.

Overseas, Asian stocks are trading lower on Thursday as a data release showed employment in Australia falling in April.

On the economic data front, seasonally adjusted employment in Australia fell by 594,300 people in April as compared to March, according to data released by the country's Bureau of Statistics on Thursday.P>In US, stock benchmarks closed sharply lower Wednesday as Wall Street digested a grim near-term economic outlook from Federal Reserve Chairman Jerome Powell and as state and federal officials attempt to restart businesses from a coronavirus-induced lockdown.

The moves came as U.S. Federal Reserve Chairman Jerome Powell said Wednesday that more may need to be done to support the economy. While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks, Powell said.

Back home, key equity indices ended with strong gains on Wednesday as PM Modi's Rs 20 lakh crore economic stimulus package boosted investor sentiment. Gains in banks and auto stocks pushed the indices higher. The barometer S&P BSE Sensex jumped 637.49 points or 2.03% at 32,008.61. The Nifty 50 index gained 187 points or 2.03% at 9,383.55.

Foreign portfolio investors (FPIs) sold shares worth Rs 283.43 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 232.65 crore in the Indian equity market on 13 May, provisional data showed.

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