Market was waiting for a fiscal measure; important to watch details now, says Motilal Oswal's Raamdeo Agrawal

Agrawal said the key things to watch out from the package will be non-financial aspects such as land, labour and laws and they could have the biggest impact.

“One thing which works in this situation is buy on rumours, sell on news. So once it is done that the entire announcement will happen and then we will go into the details of it and something will be below expectation and something will be above expectation then the real economy comes in. it is not about next one-two months, markets are about much longer-term. The way PM spoke yesterday, land, labour, liquidity and law — liquidity we understand what he means, half of it is already done, Rs 10 lakh crore is almost done, some more will come by way of credit guarantee. So actual fiscal write up will be very limited in terms of actual damage to the budget of the government, but other things like land, labour and law are non-financial. However, those could have the biggest impact,” Agrawal added.

Joining the discussion, Geosphere Capital Management’s Arvind Sanger said that India could lose 10 percent of its GDP just in the first quarter itself. So, this economic package makes up for the three months of losses. One should be prepared for FY21 to be a very tough year, he further added.

ICICI Securities A Prasanna said it is difficult to assess the impact on the economy right now. The key thing will be to watch out for actual cash outgo from the announcements.