Indian equity benchmarks edged higher on Tuesday, stalling a three-session losing streak even as Asian shares were on the back foot on Tuesday as COVID-19 reappearance in China raised concerns that Beijing may reimpose tight pandemic controls and those restrictions could disrupt supply chains further.
The BSE Sensex index rose 20.6 points to 61,165.44, and the broader NSE Nifty index edged up 0.01 per cent.
But China’s benchmark index fell 0.13 per cent in early trade, while the broader Asia-Pacific index ex-Japan shed 0.25 per cent. The benchmark index for Hong Kong dropped 1.31 per cent.
“China’s Covid situation is really in the front row for Asia trading,” Redmond Wong, Market Strategist for Greater China at Saxo Markets in Hong Kong, told Reuters.
The dollar, though, retreated from significant overnight gains while oil paused from Monday’s decline.
“Firmness in SGX Nifty and select Asian indices could aid local market sentiment in early Tuesday trades, despite overnight sluggishness on Wall Street,” said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.
“Two areas of concern are rising interest rates showing no signs of cooling off and its ripple effect on worldwide economic growth. With China extending lockdowns, demand for oil and other products could take a hit, resulting in a recessionary scenario in key global economies,” he added.
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