Equity benchmarks pared early gains but managed to end modestly higher on Monday after the finance minister announced fresh stimulus measures to revive festive demand and boost the economy.

After rallying nearly 400 points in the morning, the 30-share BSE Sensex buckled under selling pressure in afternoon trade, before ending 84.31 points, or 0.21 per cent higher, at 40593.80.

The NSE Nifty rose 16.75 points, or 0.14 per cent, to close at 11930.95.

According to Arjun Yash Mahajan, head of institutional business at Reliance Securities, the government’s effort to stimulate consumers demand by offering advances and cash voucher schemes looks to be short term in nature and lacks commitment to have a sustainable growth. “This may lead to a kind of destocking led demand improvement ahead of festivals. However, it may not necessarily result in a sustainable recovery,” he said.