PM Modi’s Rs 20 lakh crore stimulus package equals 16% of total BSE m-cap, double RIL’s value

Prime Minister Narendra Modi announced a massive Rs 20 lakh crore stimulus package under the Atmanirbhar Bharat Abhiyan campaign to make the country a self-reliant economy. This package is not only equivalent to nearly 10 per cent of India’s GDP, but also equals to 16 per cent of the total market value of all the listed stocks on Bombay Stock Exchange (BSE) and double the market capitalisation of Reliance Industries. The market capitalisation of BSE-listed companies stood at Rs 122 lakh crore as of Tuesday’s close. However, with today’s rally in the market, where BSE Sensex surged 1,474 points to hit 32,845, and Nifty 50’s jumped nearly 400 points, added Rs 1.84 lakh crore in investors wealth. In today’s morning session BSE’s total market-cap stood at Rs 124 lakh crore.

“The hefty Rs 20 trillion economic package announced by PM Modi yesterday is certainly higher than expectations,” Binod Modi, Senior Research Analyst at Reliance Securities, told Financial Express Online. “We believe whatever remaining (which possible could be in the range of Rs 10-13 trillion) fiscal aid to be announced, is sufficient enough to spur economic activities in the country,” Binod Modi, said adding that manufacturing segments like automobile, cement, metal, Agrochemical along with infrastructure, private banks are likely to be benefitting more with this announcement.

Another key trend is that this Rs 20 lakh crore relief package is double the market capitalisation of India’s most valued company, Reliance Industries (RIL). Earlier this week, RIL reclaimed the Rs 10 lakh crore market capitalisation mark. However, with yesterday’s fall in the RIL stock price, the market capitalisaton has tanked to Rs 9.36 lakh crore, which is still nearly half of the Rs 20 lakh crore economic package. Last week, the oil-to-telecom conglomerate announced an equity investment of Rs 11,367 crore from US-based private equity firm Vista Equity Partners.

Around 10.30 AM, BSE Sensex and Nifty 50 climbed off their day’s highs but were still trading over 2 per cent higher. Sensex was trading at 32,090, up 720 points or 2.29 per cent, While the NSE’s Nifty 50 was up 203 points or 2.21 per cent at 9,340.

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