Both the indices snapped seven consecutive weekly losses
Domestic stock markets closed over 4 per cent higher on Thursday on early signs that the coronavirus pandemic was nearing its peak globally and expectations that the government may ease the 21-day lockdown put in place to contain the outbreak. The NSE Nifty 50 closed 4.15 per cent higher at 9,111.90, while the S&P BSE Sensex ended up 4.23 per cent at 31,159.27. Both the indices snapped seven consecutive weekly losses and finished the holiday-shortened week nearly 13 per cent higher.
Sentiment was also boosted by expectations of more stimulus to thwart a global recession, with European Union finance ministers set to resume talks on a half-a-trillion support package later in the day.
The country's financial markets will remain closed on Friday, and were shut on Monday for Mahavir Jayanti holiday.
"Global positive cues and expectations of more stimulus measures are supporting the rally," said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.
Meanwhile, the government was considering easing an ongoing 21-day lockdown in some areas while extending it some hot spots such as Delhi, Mumbai and parts of the south.
World stocks were in the green with the MSCI's All-Country World Index, which tracks shares across 49 countries, inching 0.5 per cent higher.
US stock futures were up 1 per cent and the MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.56 per cent.As of Thursday, the country had reported over 4,500 infections and nearly 150 deaths.
Stocks rallied across the board on Thursday. The Nifty Bank index closed nearly 5 per cent higher, while the Nifty PSU bank index finished the session up over 3 per cent.
The Nifty auto index saw its biggest single-day gain since September, closing over 10 per cent higher. Analysts said the sector had been a laggard in the recent rally.
Pharma stocks closed in positive territory for a third straight session, with the Nifty Pharma index advancing nearly 5 per cent.
