Indian equity benchmarks started on a positive note on Tuesday after rising for three straight sessions, tracking gains in Asian bourses on hopes the Federal Reserve may pull back from its aggressive interest rate hike rhetoric at the policy meeting this week.
The BSE Sensex index rose 378.3 points to 61,124.89, and the broader NSE Nifty index opened in the green and advanced 118.5 points to 18,130.70.
Both benchmarks rose above key psychological levels on Monday to over a one-month high, extending weekly gains for the third week.
Asian equities too broadly rose even as regional factory output data showed a fall in October as global economic fears and China’s zero-COVID policy harmed demand and added to the ongoing supply problems and dimmed recovery hopes.
In addition to the Fed’s rate decision and policy path, the market will pay close attention to the Reserve Bank of Australia’s meeting on Tuesday, US jobs data on Friday, and Chinese economic activity data this week.
Wall Street was down overnight as investors looked ahead to this week’s policy meeting of the Federal Reserve for clues as to what will come next.
“It was a mixed start for risk assets as a big week of central bank decisions gets underway,” said ANZ analysts in a note.
In the global energy market, oil prices decreased as a result of investor expectations that the US supply may rise.