The increased MSP is seen as a step towards meeting the Prime Minister Narendra Modi’s promise to double farmer’s income by 2022.
The S&P BSE Sensex rallied over 200 points Wednesday despite negative global cues. The Nifty50 reclaimed 10,700 levels and closed above its short-term moving averages such as 5-EMA, 13-EMA, as well as 50-EMA which is a bullish sign.
The index picked up momentum after the Union Cabinet approved the proposal to hike minimum support price (MSP) for all Kharif crops by 1.5 times of the input cost for the 2018-19 season, a move that is expected to boost farmers’ income.
The move is in line with the announcement made by Finance Minister Arun Jaitley in Budget 2018 of MSP 1.5 times the cost of production for the crops. The increased MSP is also seen as a step towards meeting the Prime Minister Narendra Modi’s promise to double farmer’s income by 2022.
For more, watch the Markets@Moneycontrol show as Moneycontrol Research analyst Shishir Asthana talks to Anchal Pathak about what moved the markets today.