In a volatile trading session, Indian equity benchmarks traded with a positive bias for most part of the day but selling activity which took place during late hour of trade mainly forced the markets to cut all of their gains and ended Wednesday’s session in red terrain amid weakness in global equities. Key indices started off with marginal losses, as traders remained on sidelines as the central government mulls over lockdown extension beyond April 14 amid the spread of coronavirus.
But, markets rebounded from the opening losses and surged at day's high in late morning deals, as traders turned optimistic with Niti Aayog member Ramesh Chand’s statement that the government has taken several measures to safeguard farmers from any adverse impact of the ongoing lockdown, and the farm sector is expected to report a growth of little more than 3 per cent in the just-ended financial year. Adding some relief, the Small Industries Development Bank of India (SIDBI) said it will provide emergency working capital of up to Rs 1 crore to small and medium enterprises against their confirmed government orders. Though, key indices failed to hold gains and slid lower in the last hour of trading, as ratings agency ICRA predicted that India's economy is likely to witness a sharp contraction of 4.5 per cent during Q4FY2020 and is expected to post a GDP growth of just 2 percent in FY2021