Indian equity markets as well as the currency saw gains in opening trading on Tuesday. The Bombay Stock Exchange's 30-share index, Sensex rallied 1,372 points to trade at 28,963.25 in the opening session. The broader 50 share index, Nifty soared 350 points to 8,434 levels.
The rally in the market was helped by banking stocks. The banking index was up 7 percent in opening trading with key stocks such as IndusInd Bank, ICICI Bank, and Kotak Mahindra Bank soaring in early trading.
India's currency also displayed strength against the dollar in early trading, with the rupee 21 paise higher at 75.92 against US dollar on Tuesday.
Indian equity markets have taken a massive beating on account of uncertainties related to the COVID-19 pandemic. From a high of over 41,000 in February, the Sensex came down to below 27,000 levels at the end of March to recover to current levels.
India’s federal government is also likely to announce a stimulus package for the industry. The package might focus on sectors deeply impacted by the COVID-19 pandemic.
Meanwhile, India has registered a sharp increase in the number of positive cases of COVID-19. According to the federal Ministry of Health and Family Welfare, there were 4421 confirmed cases (including 66 foreign nationals) and 114 deaths due to the infection as of Tuesday.