The benchmark indices advanced on Tuesday as news of the swift progress of rains buoyed investor sentiment. Reports quoting weather department officials said the monsoon had covered nearly half of the country and conditions were favourable for further advancement into the central and western parts this week.
The benchmark indices ended the past two sessions in the red on concerns over deficient rains and India-US trade tensions. Last week, the India Meteorological Department said the cumulative rainfall during this year's southwest monsoon season was below the long period average (LPA) by 43 per cent. LPA is the average rainfall received by the country as a whole during the southwest monsoon for 50 years.
The monsoon season accounts for a huge chunk of India's annual rainfall and delay in rains will affect the sowing season. The markets have been on the tenterhooks lately due to concerns over weak corporate fundamentals and the looming crisis in the non-banking financial company (NBFC) sector. Investors are also concerned about a slowdown in the economy and debt defaults. Market players said a rally in the markets would depend on policy action by the government to revive economic growth and corporate earnings.