Stock Market With Anil Singhvi: US stimulus package unlikely, October end may bring some jitters, says Ajay Bagga
The markets will be a tight spot from the October month end, he added. The days around 3 November – the US elections date – could bring some setback, Ajay Bagga told Zee Business Managing Editor Anil Singhvi in an excluive chat
The US stimulus package has become a complex conundrum now for market participants and there is no clarity still on it. In a chat with Zee Business Managing Editor Anil Singhvi, market expert Ajay Bagga said that this news has been moving the markets for quite some time which indicates the importance of this issue. The stimulus package which has been due since July, will act as a big boost for the US and global markets, Bagga said.
There has been a tug-of-war between the Republicans and the Democrats over the size of the package. While the latter agreed to give a package worth USD 1.9 trillion, the demand is for a USD 2.2 trillion package by the latter.
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However, a new hurdle has come up, with news emerging from the US that the Republicans in the Senate now want this package to get deferred to January after the election results are announced, Bagga said. The view among the Republicans in the Senate is that incumbent President Donald Trump could lose the elections, Bagga added.
For the sake of headlines and unemployment, a small package could be announced, Bagga said. The Senate is meeting today to discuss on this issue, he further said.
There could be a proposal of USD 500 billion package now against the demand of Democrats, which is almost four times of this. A similar offer was earlier rejected by them.
He said that the markets were doing well, but there could be some blip towards the next week. The markets will be a tight spot from the October month end, he added. The days around 3 November – the US elections date – could bring some setback.
It will augur well for the markets if they run for some distance on the news around the stimulus package so that a slight cushion is formed. Even with some fall, the markets would them remain in a comfortable zone.
Another trend being seen now is the coming of good traction among the value stocks – stocks which were not doing well over the last 10 years, Bagga said.
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There will be a catch-up trend in Bank and NBFC stocks now like what happened on Wednesday with Bank Nifty trading in the green, he opined.
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