Tweet Buster: MSME stimulus, what to do in maximum pessimism & RIL's peanut valuation

NEW DELHI: Top names on Dalal Street are convinced about the pathetic plight of the Indian economy and industry's demand for a stimulus package from the government, which it said to be working on for two weeks now. "Relief delayed is relief denied," said one analyst. Lockdown has eased in parts and the government is trying to shore up its finances by slapping extra taxes on fuel and alcohol and increased borrowing. But will that sum be used to bring relief to the economy is a question on everyone's mind.

Aveek Mitra, founder, and CEO at Aveksat Financial advisory, blamed 'political arrogance' for the delay in the economic stimulus. Mitra said, "The Centre believes it deson't need to depend on the economic well being of their voters and supporters. This has also brought in a type of casualness in decision making."



iThought co-founder Shyam Sekhar said giving support to the MSMEs is not an option, but a necessity.

Independent market expert Sandip Sabharwal attributed lack of any such stimulus package to fear of a rating downgrade. "The government must realise if growth collapses and doesn't recover fast, tax revenues will remain subdued, fiscal deficit will balloon and the downgrade will happen in any case. It's better to go down fighting."

Meanwhile, after April's stellar run, market has seen some fear creep in. For the week, the benchmark indices declined nearly 16 per cent. Will the market see more pain ahead? It's likely. Fund manager Ravi Dharamshi says everything is pointing towards point of maximum pessimism in the market and wished investors luck.

Market veteran Vijay Kedia weighed in and advised investors to use the stock market rallies to sell fundamentally weak stocks.

Sharing one of his investing experience, Helios Capital's Samir Arora told investors to not get closer to companies they cannot question as that takes away the neutrality while analysing them.

Shankar Sharma believes what RIL has created is a massive tech enterprise and since it is an Indian company, it is getting peanuts for valuations. Do you concur?