equity benchmarks witnessed biggest single-day gain ever in absolute terms on Tuesday by rallying over eight and half percent in the session, tracking gains in Asian markets, even as domestic Covid-19 cases continue to rise in the country. Key gauges opened with a strong gap on the upside and traded jubilantly for whole day as traders took encouragement with report that the Finance Ministry is working on a second relief package for the Indian economy hit hard by the coronavirus outbreak and the 21-day nationwide lockdown imposed to curb the contagion.
Markets continued their strong bullish momentum in late trade as the commerce ministry designed an online platform for issuance of a key document required for exports to those countries with which India has trade agreements, with a view to facilitate shipments during the COVID-19 crisis. Traders ignored Fitch Ratings’ statement that it has slashed India's growth forecast for the current fiscal to a 30-year low of 2%, from 5.1% projected earlier, as economic recession gripped global economy following the lockdown due to COVID-19 pandemic. Investors also paid no heed towards a report that India’s services sector growth contracted in March after registering the strongest rise in business activity for over seven years in February, as the covid-19 outbreak dented client demand, particularly in overseas markets. Services Purchasing Managers’ Index (PMI) fell to 49.3 from 57.5 in February.