The strong rally was underpinned by buying by overseas investors. On Tuesday, foreign portfolio investors (FPIs) were net buyers after many months, buying shares worth Rs 740 crore.
While the absolute amount was relatively small, market players said the positive number was a huge sentiment booster. In March, FPIs pulled out a record Rs 62,000 crore from domestic equities. Experts said some investors had turned bullish as the lockdown
measures had proved effective in containing the spread of the virus.
“Until a few days ago, the markets closely tracked the change in daily new cases, but they are now focusing on the rate of change of daily new cases, which is decelerating,” Abhiram Eleswarapu, head of equities, BNP Paribas India, said.