Indian equity benchmarks rose on Tuesday, stalling a three-session losing streak buoyed by a recovery in Chinese shares after new government initiatives to support the beleaguered property sub-sector there boosted sentiment.

While the dollar pulled back on Tuesday from strong overnight gains, worries persisted that Beijing may re-impose harsh Covid restrictions that might disrupt supply chains further and kept investor sentiment towards risk assets in check.

The BSE Sensex index rose 274.12 points, or 0.45 per cent, to close at 61,418.96, and the broader NSE Nifty index edged 0.46 per cent, or 84.35 points, higher to end at 18,244.20.

Both benchmarks had fallen in the previous three sessions.

Global shares edged higher, recouping some of the losses from the previous day as increased investor risk appetite spurred flows into stocks and commodities.

The MSCI All-World index of stocks increased 0.2 per cent, on track to post gains for a second consecutive month, which would be its longest winning streak since late 2021.

Asian stocks recovered from losses earlier in the day and European shares rose, while US futures wavered as investors parsed Federal Reserve officials’ statements on interest rate increases and evaluated the effect of Covid infections in China.

The MSCI All-World index of stocks increased 0.2 per cent, putting it on track to post gains for a second consecutive month, which would be its longest winning streak since late 2021.

Fed officials have kept up their unwavering commitment to fighting inflation. However, Cleveland Fed President Loretta Mester said she’s open to delaying the pace of rate hikes.

In contrast, San Francisco Fed President Mary Daly said authorities must be aware of the delays in transmitting policy adjustments.

“In a year like this, it is so difficult and often a fool’s errand to read too much into any one speech from one Federal Reserve official,” Sarah Ponczek, Financial Adviser at UBS Private Wealth Management, said on Bloomberg Television.

“The reality is that we do expect that the Federal Reserve is still likely going to raise interest rates again in December.” 

In commodities market, Tuesday saw an uptick in oil prices following Saudi Arabia’s denial of a story in the media that it was considering an increase in oil production with OPEC and its allies.

“Markets remain subject to even greater volatility due to a total dearth of market liquidity, as was all too evident in crude oil futures, as they plunged on the WSJ story suggesting Saudi Arabia may propose a very surprising increase in OPEC production at the December meeting, only to fully reverse when this was denied,” ADM Investor Services Chief Global Economist Marc Ostwald told Reuters.