A momentary cheer or something more? India stocks rallied on Tuesday, with investor sentiments suggesting the worst is over. Image Credit: AP

Dubai: India markets rallied on Tuesday, mirroring an easing up in wider investor sentiment in line with the coronavirus pandemic waning in some global hotspots.

The benchmark S&P BSE Sensex jumped 8.9 per cent - 2,476 points - to close at 30,067.21. The broader 50-share Nifty followed with gains of 8.76 per cent, or 708 points, to end at 8,792.

The markets, trading a day after being shut on Monday on account of “Mahavir Jayanti”, will also be closed on the last day of the week on account of Good Friday.

Both the indices posted its biggest single-day gain since May 2009, with all the 30 constituents of the Sensex ending in the green. Mahindra & Mahindra (M&M), FMCG major Hindustan Unilever (HUL) and Britannia Industries recorded the most gains.

Analysts said supportive global cues, indications of an ease in lockdown restrictions and hopes that the coronavirus spread may have peaked in key global centres, helped boosted investor sentiment.

“So, the play today would be about capturing the first dip... and avoid being caught in a bull trap,” analysts at Geojit Securities wrote in a note, regarding the moves on Nifty. “Expect upsides to gather pace once above 8,660 (points).”

In India, coronavirus cases continued to rise despite a complete lockdown. India is consecutively reporting biggest single-day jumps in new COVID-19 cases since last Monday. As of Tuesday, the number of infected cases went past 4,000 mark, with 375 recovered cases. The death toll has risen to 136.

However, fear guage India VIX continued to decline and hit a month low of 52.06, down around 6 per cent. Authorities are studying a proposal to partially lift restrictions in low-risk states and districts while continuing with stringent curbs in areas with the maximum number of cases.