For Quick Alerts
For Daily Alerts

Economic Package Melts Markets As Investors Unimpressed, Sensex Crashes


Benchmark indices ended the day sharply lower, on a day when most markets were up 1 to 3 per cent, as investors remained unimpressed with the economic package announced by the government. The belief is that most of the package was through a monetary stimulus, without any fresh money for more direct measures.

Economic Package Melts Markets As Investors Unimpressed, Sensex Crashes

The Sensex ended the day lower by a massive 1,038 points, while the Nifty lost 314 points to end below the 9,000 points mark at 8,823 points.

Banking stocks plunged in trade, after the Finance Minister announced that the threshold to initiate insolvency proceedings were raised to Rs 1 crore from Rs 1 lakh earlier.

In a bid to give some relief to companies, which are likely to default on loans due to the Covid-19 stress, Finance Minister Nirmala Sitharaman on Sunday said no fresh insolvency will be initiated for one year under the Insolvency and Bankruptcy Code. Also, coronavirus-related debt will be excluded from definition of default, which saw further selling pressure in banking stocks.

Bluechip banking names like HDFC Bank and ICICI Bank tumbled almost 5 to 7 per cent. NBFCs like L&T Finance Holdings and HFC like India Bulls Housing fell 7 and 9 per cent respectively.

Shares in Reliance Industries also dropped, even the company announced that General Atlantic will pick a stake in the company.

IT stocks ended the day firm with TCS and Infosys gaining more than 2 per cent each. The Bank Nifty fell almost 6.5 per cent in trade.

Read more about: sensex nifty
Story first published: Monday, May 18, 2020, 15:39 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more