In a highly volatile session, Indian equity benchmarks gave up most of their gains but managed to end Monday's session on optimistic note, led by gains in Power, Metals and Healthcare stocks, in contrast with the global peers.  Markets made optimistic start and traded with decent gains as traders took encouragement with Chief Economic Advisor Krishnamurthy V Subramanian's statement that demand in the economy will increase when the uncertainty regarding health in the wake of COVID-19 outbreak ends. Some support also came as Industry body CII has identified measures in key areas for improving India's ease of doing business scenario that can help the country achieve self-reliance. It suggested that micro, small and medium enterprises (MSMEs) need a special helping hand, and should be exempted from approvals and inspections for three years under state laws while following all rules. Domestic indices extended their upside in late afternoon session, taking support from Finance Minister Nirmala Sitharaman's statement that the government is closely monitoring situation in consultation with banks so that relief measures announced by the government are effectively percolated at ground levels especially the transmission of repo rate cuts to corporates and consumers in order to stimulate the economy, hit hard by coronavirus (COVID 19) pandemic. However, key indices trimmed most of gains to come off day's high as Fitch Ratings has revised the outlook to negative from stable on long-term issuer default ratings (IDRs) of nine India-based banks while affirming their IDRs, support ratings and support rating floors. The rating actions follow Fitch's revision of the outlook on the BBB-minus rating on India to negative from stable due to the impact of escalating coronavirus pandemic on the country's economy. Finally, the BSE Sensex gained 179.59 points or 0.52% to 34,911.32, while the CNX Nifty was up by 66.80 points or 0.65% to 10,311.20.

The US markets ended higher on Monday, with Nasdaq closing higher for the seventh straight session, reaching a new record closing high, as investors weighed optimism over a quick recovery for the domestic economy, or V-shaped rebound, against evidence of an acceleration of COVID-19 infections in half of all US states and elsewhere in the world. Investors have become upbeat about better-than-expected US economic data and hopes that Congress will pass another nearly $1 trillion fiscal stimulus package this summer. Traders shrugged off a report from the National Association of Realtors (NAR) showing a continued nosedive in existing home sales in May. NAR said existing home sales plunged by 9.7 percent to an annual rate of 3.91 million in May after plummeting by 17.8 percent to a rate of 4.33 million in April. Street had expected existing home sales to slump by 4.8 percent to a rate of 4.12 million. Existing home sales declined for the third straight month and are down by 26.6 percent compared to the same month a year ago. NAR's chief economist -- Lawrence Yun said sales completed in May reflect contract signings in March and April - during the strictest times of the pandemic lockdown and hence the cyclical low point. He added home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year. Meanwhile, The World Health Organization on Sunday reported the largest single-day increase in global COVID-19 cases, more than 183,000. In US, there are 24 states that showed an increasing trend in cases this past week, with California, Texas and Florida continuing to lead the way, each with more than 4,000 new cases on Sunday alone. The global tally for COVID-19 has topped 9 million.

Crude oil futures ended higher on Monday as traders continued to bet energy demand will increase despite a rise in cases of COVID-19. In the US, infections of the virus increased over the weekend, while places outside of the US also saw cases climb. South Korea declared itself in the midst of second wave, Germany also saw its rate of infection rise as the World Health Organization reported a record increase in global cases on Sunday. Oil prices improved recently as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, in a group known as OPEC+, agreed to extend a global cut of 9.7 million barrels a day to the end of July. Crude oil futures for July gained 71 cents or 1.8 percent to settle at $40.46 a barrel on the New York Mercantile Exchange. August Brent crude rose 89 cents or 2.1 percent to settle at $43.08 a barrel on London's Intercontinental Exchange.

Indian rupee ended higher against dollar on Monday, on continued selling of the American currency by exporters and banks. Sentiments remained buoyant as Reserve Bank of India's (RBI) data showed that India's forex reserves rose substantially by $5.942 billion to touch a life-time high of $507.644 billion in the week to June 12, helped by a significant jump in the foreign currency assets (FCA). The rupee also derived its strength from strong gains in the local equity markets as well as dollar's weakness against some currencies overseas. On the global front, dollar fell in overnight trading on Monday, edging away from last week's two-and-a-half-week highs, while the riskier New Zealand and Australian dollars gained as fears of a second wave of COVID-19 did little to dampen investors' risk appetite. Finally, the rupee ended at 76.03, 17 paise stronger from its previous close of 76.20 on Friday.

The FIIs as per Monday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 14544.56 crore against gross selling of Rs 13307.89 crore, while in the debt segment, the gross purchase was of Rs 1410.25 crore with gross sales of Rs 935.09 crore. Besides, in the hybrid segment, the gross buying was of Rs 2.65 crore against gross selling of Rs 0.79 crore.

The US markets ended higher on Monday as traders continued to express optimism the US economy will quickly recover from the coronavirus-induced setback. Asian markets are trading mostly in green on Tuesday following gains on Wall Street. Indian markets ended higher on Monday with banking, pharma and metal stocks leading the surge despite the threat of rising coronavirus infections both at home and abroad. Today, the start of the session is likely to be marginally in green mirroring positive global cues. Traders will be getting encouragement with Commerce and industry minister Piyush Goyal's statement that India's exports in the first two weeks of June have reached above 80% level of the same period last year and would be only 10-12% lower in the month compared to June 2019. Some support will also come with Niti Aayog Vice Chairman Rajiv Kumar's statement that India will transform into a middle-income country from a lower middle-income economy by 2030. Kumar also said that India will witness a recovery in investment cycle by April 2021 and beef up efforts on trade front as well. Though, traders may be concerned with rising coronavirus cases in the country. India has again recorded nearly 15,000 cases of coronavirus in a day, taking its total to 440,450. The country's death toll has crossed the 14,000 mark. Also, there may be some cautiousness as Moody's Investors Service projected the Indian economy to shrink 3.1 per cent in 2020 and said clashes with China on the border also suggest rising geopolitical risks in the Asian region where countries are particularly vulnerable to changes in geopolitical dynamics. there will some buzz in the select banking stocks as Fitch Ratings revised the outlook on the Long-Term Issuer Default Ratings (IDR) of nine Indian banks to Negative from Stable. Information and Technology (IT) stocks will be in focus after the US President Donald Trump signed an order restricting H-1B, L-1 and other temporary work permits. There will be some reaction real estate stocks with a private report that the overall lending to real estate in India declined by 46 per cent in FY20 with Rs 1.2 lakh worth of loans sanctioned in FY20.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Cipla has launched remdesivir under its brand name CIPREMI.  
• HDFC Bank's board has approved issue of Perpetual Debt Instruments, Tier II Capital Bonds and Long Term Bonds up to a total amount of Rs 50,000 crore in next 12 months. 
• Coal India's subsidiary -- MCL has laid out an investment of about Rs 60,000 crore in Odisha. 
• L&T's wholly owned subsidiary -- LTHE has signed a MoU with KBR to build Modular Process Plants for refinery and petrochemical projects.