Indian market indexes climbed in early trade on Tuesday, extending gains from the previous session, when domestic stocks ended a four-day losing streak.
In early trade, the BSE Sensex index surged 287.55 points, or 0.47 percent, to 60,853.97, while the broader NSE Nifty-50 index gains 81 points, or 0.45 percent, to 18,095.60, mirroring a general uptick in Asian shares.
Domestic benchmarks reversed direction to climb substantially in a low-volume session on Monday, snapping a four-day losing skid, with the Sensex rising 721.13 points, or 1.2%, to close at 60,566.42, and the Nifty rising 207.80 points, or 1.17 percent, to end at 18,014.60.
On Tuesday, global financial markets soared and the US dollar fell on improved risk appetite following China’s announcement that it will eliminate quarantine restrictions for entering visitors, drastically relaxing three-year border barriers aimed to halt COVID-19.
According to Chaoping Zhu, Global Market Strategist at JPMorgan Asset Management, China’s most recent policy adjustment shows that economic activity in the majority of large cities may quickly return to normal, which is great news for investors, according to Reuters.
“Most Chinese cities could recover from the first wave of the latest COVID-19 outbreak by January…this would be faster than people expected,” he said, adding that there was concern about an outbreak lasting longer and wreaking havoc on the economy, but that developments had been better than expected in general.
He went on to say that China’s opening, which also means that Chinese tourists would be able to travel again, will stimulate the consumer and service industries outside of the country, notably in neighbouring Southeast Asia.
Stocks are projected to rise when traders return to their terminals on Tuesday after the Christmas holiday, based on US stock futures, which climbed in low volume trading as some markets, such as those in Australia and Hong Kong, remain closed.
Meanwhile, in the energy sector, oil prices rose slightly on Tuesday due to concerns that winter storms in the United States might impede the production and distribution of shale oil and petroleum products.
