Indian equity indices ended higher on Monday, marking the fourth successive day of gains, shrugging off weak trend in Asian markets and concerns over mounting COVID-19 cases. Markets recaptured their crucial 11,000 (Nifty) and 37,400 (Sensex) levels. Key gauges made an optimistic start and traded with a positive bias throughout session, as sentiments got a boost with Reserve Bank of India (RBI) executive director M Rajeshwar Rao’s statement that future economic policies need to be modified towards supporting the economy, depending on how effects of Coronavirus disease (COVID-19) pandemic play out.
However, markets turned volatile and gave up some of gains in late
morning session, as some cautiousness came with India Ratings
and Research’s (Ind-Ra) report that the government's fiscal deficit
is estimated to touch 7.6% in FY21, more than double the Budget
Estimate (BE), as the nation spends extra to lessen the impact of
the COVID-19 pandemic while facing a shortfall in incomes. But, in
the final hour of trade, domestic indices gained traction and settled
over a percent higher each, as traders found support with Niti
Aayog CEO Amitabh Kant’s statement that clean energy has
potential to shore up the Indian economy from the current
downturn. He also urged investors to exploit long-term
opportunities in the sector.