Markets recover sharply as investors remain optimistic ahead of PM Modi's speech

Indian shares markets seem to be staging a recovery as it nears closing on Tuesday. Benchmark markets significantly reduced losses during the afternoon session, after starting the day poorly.

At around 2 pm, BSE Sensex was down just over 140 points, while NSE Nifty went above 9,200 points.

Reliance Industries Limited (RIL) shares lost over 3.5 percent on profit-booking while banking and financial stocks continued to perform poorly in afternoon trade.

While a slight increase in volatility gauge was also observed, market investors are hoping for an announcement on the stimulus package for small companies.

A sharp spike in cases in India and resurgence of cases in some countries have made investors nervous, besides a flurry of weak corporate earnings reports. But they are now keenly awaiting a crucial address by PM Modi at 8 pm today.

It is worth mentioning that the government is all set to unveil fresh stimulus support for Micro, Small and Medium Enterprises (MSMEs) in India, which have been hit hard by the coronavirus lockdown.

Reports suggest that the relief package will be released this week, but experts suggest that each day of delay is hurting small companies hard and that immediate liquidity support should be given to them.

A report by Care Ratings recently said that most small-scale businesses may collapse if there is no timely support from the government.

As of now, positive coronavirus cases in India has crossed 70,000 with nearly 2,300 deaths