The country's richest state Maharashtra, Prime Minister Narendra Modi's home state of Gujarat and the Indian capital New Delhi have already announced similar relaxations.
The blue-chip NSE Nifty 50 index rose 0.65% to 15,737.75 and the benchmark S&P BSE Sensex climbed 0.69% to 52,300.47 at close. Both the indexes are set for a fourth straight weekly gain.
In Mumbai trading, Bajaj Finance Ltd, State Bank of India and HDFC Ltd were among the top boosts to the Nifty 50, gaining between 0.7% and 7.3%.
The blue-chip NSE Nifty 50 index climbed 0.52% to 15,751.65 at close, and the benchmark S&P BSE Sensex added 0.44% to 52,328.51.
Energy and information technology stocks also supported the Nifty 50 index, with the Nifty Energy index rising 1.85% and the Nifty IT index jumping 1.11%.
The blue-chip NSE Nifty 50 index closed 0.05% lower at 15,574.85, while the benchmark S&P BSE Sensex was unchanged. Both the indexes closed 1% higher on Monday, building up on gains posted last week.
Energy stocks gained after Brent crude prices topped $70 and traded at their highest since March, as optimism grew over the fuel demand outlook.
The blue-chip NSE Nifty 50 index rose 0.95% to 15,582.80 at close, while the benchmark S&P BSE Sensex climbed 1% to 51,937.44. The indexes posted gains of around 2% each last week, with the Nifty closing at a record high on Friday.
Indian bond yields also edged higher, following the government's decision to further increase its market borrowing.
The blue-chip NSE Nifty 50 index was up 0.24% at 15,337.85, while the benchmark S&P BSE Sensex was 0.19% higher at 51,115.22.
India reported 211,298 new coronavirus cases over the past 24 hours, with the number remaining well below the 300,000-mark for the eleventh day, while deaths rose by 3,847.
The blue-chip NSE Nifty 50 index closed 0.61% higher at 15,301.45, while the benchmark S&P BSE Sensex rose 0.75% to 51,017.52.
Software services giant Infosys Ltd and mortgage lender HDFC Ltd were among the biggest boosts to the Nifty 50, gaining 2.6% and 1.5% at close, respectively. The Nifty IT Index ended 1.76% higher.
The blue-chip NSE Nifty 50 index added 1.81% to close at 15,175.30, while the benchmark S&P BSE Sensex gained 1.97% to end at 50,540.80. For the week, both the indexes rose more than 3%.
The Nifty Bank Index jumped 3.82% after a more than 1% drop on Thursday, helped by a 4.3% rise in SBI after the country's largest lender by assets reported a record quarterly profit.
The blue-chip Nifty 50 index closed 0.83% lower at 14,906.05 and the S&P BSE Sensex ended 0.68% lower at 49,564.86 after trading flat for most of the day. Most major sub-indexes closed in the red.
Financial stocks, which had cushioned losses earlier in the day, gave up gains. Index heavyweight ICICI Bank fell 1.1% and HDFC Bank settled 1.6% lower.
The blue-chip NSE Nifty 50 index closed down 0.52% at 15,030.15, while the benchmark S&P BSE Sensex settled 0.58% lower at 49,902.64.
ICICI Bank and HDFC Bank closed 1.22% and 1.25% lower, respectively. Both stocks were top boosts to the Nifty on Monday and Tuesday, and are still up about 5% for the week.
India's total coronavirus cases surged past the 25 million mark on Tuesday. Daily cases rose by 263,533, remaining below the 300,000 mark for a second day, a level last seen on April 21, while deaths increased by a record 4,329.
The NSE Nifty 50 index settled 1.67% higher at 14,923.15, snapping a three-session losing streak, while the benchmark S&P BSE Sensex ended up 1.74% at 49,580.73.
The Nifty Auto index added 1.9%, led by a 10.43% rise in Balkrishna Industries after the tyre maker posted a rise in quarterly profit on Friday.
The NSE Nifty 50 index fell 1.04% to 14,696.50, while the S&P BSE Sensex slid 0.96% to 48,690.80.
Adding to investor concerns, India reported a record surge in coronavirus deaths in the past 24 hours, pushing its overall death toll over a quarter million.
The NSE Nifty 50 index closed 0.73% higher at 14,724.8 and the S&P BSE Sensex rose 0.56% to 48,949.76, their highest close since April 29, after struggling to make headway earlier in the session.
India reported more than 400,000 coronavirus infections over the last 24 hours, taking the total tally past 21 million, while deaths rose by a record 3,980, health ministry data showed.