Indian stock benchmarks edged higher on Tuesday, snapping a three-game losing streak even as Asian stocks retreated on Tuesday as the resurgence of COVID-19 in China raised fears that Beijing could reimpose strict controls against the pandemic and that these restrictions could further disrupt supply chains .
The BSE Sensex index rose 20.6 points to 61,165.44, and the broader NSE Nifty index edged up 0.01%.
But China’s benchmark index fell 0.13% at the start of trade, while the broader Asia-Pacific ex-Japan index lost 0.25%. The benchmark for Hong Kong fell 1.31%.
“The Covid situation in China is really front and center for Asian trading,” Redmond Wong, Greater China market strategist at Saxo Markets in Hong Kong, told Reuters.
The dollar, however, pulled back strong gains overnight as oil paused after Monday’s decline.
“The firmness of SGX Nifty and some Asian indices could help local market sentiment in Tuesday morning trading, despite the overnight gloom on Wall Street,” said Prashanth Tapse, senior vice president of research at Mehta Equities.
“Two areas of concern are rising interest rates showing no signs of abating and its ripple effect on global economic growth. With China prolonging lockdowns, demand for oil and other commodities could take a hit , leading to a recession scenario in the main ones “he added.
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