Indian stocks snapped a two-game losing streak on Tuesday, partially recovering as broader Asian stocks edged higher, following a late rally on Wall Street, with the Nasdaq ending sharply higher after Twitter accepted the offer to buy Elon Musk.
Twitter ended up 5.6% after news that Elon Musk, the world’s richest person, had reached a deal to pay $44 billion in cash for the social media platform populated by millions of people. users and world leaders.
The BSE Sensex index jumped more than 600 points to around 57,187, while the Nifty rose more than 1% to around 17,135 on Tuesday, after both indexes fell more than 1% during the previous session.
On Friday, the 30-share BSE Sensex had plunged 715 points or 1.23% to close at 57,197, while the broader NSE Nifty was down 221 points or 1.27% to close at 17,172.
Still, fears for global growth fueled by China’s tough COVID-19 restrictions and an expected streak of aggressive Federal Reserve tightening are expected to undermine risk appetite and weigh on global equities.
China’s strict lockdown and its proliferation as cases spread to other major cities like Beijing are weighing on economic growth prospects and investment sentiment, Manishi Raychaudhuri, Asia-Pacific equity strategist at Reuters, told Reuters. BNP Paribas.
“If the lockdown situation persists any longer,” it would have a significant impact on China’s economy and “would also impact supply chains across the world,” he said.
What added to the dollar’s appeal and rattled financial markets were signals from the US Federal Reserve for very aggressive monetary policy as investors feared it could derail the nascent global economic recovery.