Dip in Covid cases boosts indices; Sensex up 1.74%, FIIs remain net sellers

The benchmark indices surged on Monday as investor sentiment got a boost after fresh Covid-19 cases dropped below the 300,000-mark for the first time in 27 days. The uptick in global markets on optimism over the economic recovery helped counter concerns over rising inflation.

The rally, however, surprised many as it came on a day when Citibank cut India’s gross domestic product (GDP) forecast for financial year 2021-22 (FY22), and cyclone winds caused damage in the financial capital Mumbai.

The benchmark Sensex ended the session at 49,580.7, with a gain of 848 points or 1.7 per cent, and the Nifty ended the