BENGALURU (Reuters) – Indian shares rebounded from a virus-led slump on Tuesday, as the country ramped up vaccinations to counter a stubborn surge in COVID-19 cases that has prompted strict restrictions in major cities.

The NSE Nifty 50 index rose 0.68% to 14,457.45 by 0451 GMT, while the S&P BSE Sensex climbed 0.65% to 48,263.3. The two indexes fell 1.77% and 1.81% each on Monday when India reported a record daily jump in infections and its capital New Delhi went into a lockdown.

On Tuesday, however, new COVID-19 cases retreated from record levels to be at 259,170.

The Indian government said on Monday it would let all citizens over the age of 18 have COVID-19 vaccinations from May 1, and would waive customs duty on vaccine imports.

“The government’s steps are being seen as a positive input despite the lockdowns… it seems like vaccinations are the only way out now and if they work, things will improve drastically,” AK Prabhakar, head of research at IDBI Capital, said.

The country also approved a 45.67-billion-rupee ($610 million) grant for vaccine makers Serum Institute of India and Bharat Biotech to boost production capacity, while sources told Reuters the government was hopeful that the United States will soon lift a ban on vaccine raw materials.

State-owned banks led the gains among sectors as it jumped 2%. The index was on track to snap a three-session losing streak.

Private banks added 1.2%, with lenders ICICI Bank and Bajaj Finance driving the gains on the benchmark index.

Auto stocks rose 1.6%, with Mahindra and Mahindra gaining 2.2%.

Dr. Reddy’s Laboratories was among the top gainers on the benchmark index, as pharmaceutical stocks rose 1.2% amid rising demand for medical supplies and testing services.