Key Indian stock indices retreated over 3% on Monday, May 18, after the details of the fiscal and monetary stimulus package were unveiled. Notably, the government allocated INR 20 tn (USD 265 bn), or nearly 10% of the country’s GDP, for measures to mitigate the negative impact of the pandemic. However, less than INR 2 tn is slated for outright payouts to households. This amount fell short of expectations, stoking negative market sentiment. By the close, the BSE Sensex 30 traded down 3.44% to 30,028.98, and the Nifty 50 settled 3.43% lower at 8,823.25. On the FX market, the USD/INR pair firmed 0.29% to 76.040, while EUR/INR added 0.24% to 82.2060. The 10-year Indian government bond yield narrowed 3.1 bps to 6.050%. In sectoral terms, IT stocks outperformed the broader market, whereas media, financial services and automotive names as well as state-owned banks posted the biggest losses. Among the advancers, Cipla, Tata Consultancy Services, Bharti Infratel, Infosys and HCL Tech stood out, up 0.3-5.5% on the day. Notable decliners included IndusInd Bank, Zee Entertainment Enterprises, Eicher Motors, Bharat Petroleum and UltraTech Cement, which slid 7.2-9.6%. In technical terms, the BSE Sensex 30 has approached our target at 30,000 after breaking out of a rising wedge earlier. Currently, the benchmark still holds downside potential, with the next target at 28,000.