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Stock Market India: Benchmark equity indices rally for the second day in a rowIndian equity benchmarks rallied for the second straight session on Tuesday, driven by improved risk sentiment buoyed by China reopening, bolstering hopes for a resurgence in demand in the world’s second-largest economy.The BSE Sensex index surged 361.01 points, or 0.6 per cent, to close at 60,927.43, and the broader NSE Nifty-50 index jumped 117.7 points, or 0.65 per cent, to end at 18,132.30.Domestic benchmarks had reversed course to rally sharply on Monday in a low-volume session, stalling a four-day losing streak, with the Sensex rallying 721.13 points, or 1.2 per cent, to close at 60,566.42, and the Nifty rose 207.80 points, or 1.17 per cent, to end at 18,014.60.”Investors will be hoping that stocks will stage a Santa Claus rally, bringing some more respite to the markets. However, volatility is likely to be the hallmark in the near term amidst December F&O (futures and options) expiry this Thursday,” said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.Following China’s decision to lift the quarantine imposed on foreign tourists, shares of travel and consumer products increased in Tokyo and Seoul.The latest change from China shows that economic activity in most major cities may quickly return to normal, which is fantastic news for investors, according to Chaoping Zhu, Global Market Strategist at JPMorgan Asset Management, reported Reuters.”Most Chinese cities could recover from the first wave of the latest COVID-19 outbreak by January…this would be faster than people have expected,” he said, adding there was the concern of an outbreak lasting longer and weighing on the economy, but that developments have been in general better than expected.The consumer and service businesses outside of China, notably those in neighbouring Southeast Asia, will benefit from the opening of China, which also means that Chinese tourists will once again be permitted to travel, added Mr Zhu.Data released on Friday showed the Federal Reserve’s preferred price index easing while consumer spending stagnating helped underpin the gain of futures contracts for US and European markets as traders return to their terminals on Tuesday following the Christmas holiday.Still, the US, Asian, and international stocks have fallen by nearly 20 per cent this year, which is the worst yearly performance since 2008.Meanwhile, in the energy market, Tuesday saw oil prices jump to a three-week high due to worries that the production and logistics of shale oil and petroleum products are being hampered by winter storms sweeping the US.Oil prices were rising toward $85 per barrel, also boosted by the outlook for demand from China as the economy reopens.After being whipsawed by the Russian invasion of Ukraine, concerns about a global recession, and most recently, a ferocious Covid-19 wave in China as restrictions are eased, oil is expected to conclude the year slightly higher. Last week, crude rose more than 7 per cent as Russia threatened to reduce production by as much as 700,000 barrels per day in reaction to sanctions.Featured Video Of The DayRBI Hikes Key Lending Rate, Lowers Growth Estimate

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