The Nifty and the Sensex surged in trade, playing catch-up with global markets, which had rallied on Monday. Indian markets which were closed on Monday, hence reacted today with the Sensex surging 1768 points, while the Nifty gained 511 points in trade.
Reports that the lockdown maybe eased helped sentiments. Also, domestic investors were encouraged by news that India may see passive flows as the FPI limit has been increased to the sector foreign limit.
US stocks surged on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, the country's biggest coronavirus hot spot. Most of the global markets rallied on reports that major countries were seeing fewer deaths and infections.
Banking stocks were the biggest gainers in trade with the Bank Nifty surging almost 6 per cent in trade. ICICI Bank, Bandhan Bank, Axis Bank and IndusInd Bank were among the big gainers in trade.
Auto stocks also saw good buying support with Mahindra and Mahindra among the top gainers in trade. There were no Nifty losers in early trade today.