Sensex rises over 270 points, snapping three-day losing streak
Indian equity benchmarks rose on Tuesday, snapping a three-game losing streak buoyed by a rally in Chinese equities after new government initiatives to support the beleaguered property sub-sector there boosted sentiment.
As the dollar retreated on Tuesday after strong overnight gains, concerns lingered that Beijing could reimpose tough Covid restrictions that could further disrupt supply chains and keep investor sentiment towards assets in check. at risk.
The BSE Sensex index rose 274.12 points, or 0.45%, to close at 61,418.96, and the broader NSE Nifty index edged up 0.46%, or 84.35 points, to finish at 18,244.20.
Both benchmarks had fallen in the previous three sessions.
Global equities edged higher, recouping some of the previous day’s losses as heightened investor risk appetite boosted flows into equities and commodities.
The MSCI All-World equity index rose 0.2%, on track to post gains for a second consecutive month, which would be its longest winning streak since the end of 2021.
Asian stocks rebounded from losses earlier in the day and European stocks rose, while US futures faltered as investors weighed statements from Federal Reserve officials on interest rate hikes and were assessing the effect of Covid infections in China.
The MSCI All-World equity index rose 0.2%, putting it on track to post gains for a second consecutive month, which would be its longest winning streak since the end of 2021.
Fed officials maintained their unwavering commitment to the fight against inflation. However, Cleveland Fed President Loretta Mester said she was ready to delay the pace of rate hikes.
By contrast, San Francisco Fed President Mary Daly said authorities should be aware of delays in transmitting policy adjustments.
“In a year like this, it’s so difficult and often foolish to read too much into a speech by a Federal Reserve official,” Sarah Ponczek, financial adviser at UBS Private Wealth Management, told Bloomberg Television.
“The reality is that we expect the Federal Reserve to probably raise interest rates again in December.”
In the commodities market, Tuesday saw a rise in oil prices following Saudi Arabia’s denial of a media story that it was considering an oil production boost with OPEC and its allies.
“Markets remain subject to even greater volatility due to a complete shortage of liquidity in the market, as was all too evident in crude oil futures as they plunged into the WSJ story suggesting that Saudi Arabia could offer a very surprising increase in OPEC production at the December meeting, only to reverse completely when it was refused,” economist Marc Ostwald told Reuters. Global Head of Investor Services at ADM.
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