India’s benchmark stock index was mixed on Monday as investors bet on expectations of improving Chinese demand and lingering fears of a global recession due to rising long-term interest rates.

The BSE Sensex fell 15.68 to 61,272.11 in early trade, while the NSE Nifty opened in the green as investors eyed a volatile session.

Both benchmarks fell for a second straight session on Friday as hawkish comments from major central banks fuelled fears that the global economy could be in recession.

Oil prices steadied after falling sharply in the previous session on hopes that China might ease COVID-19 restrictions, which could limit gains in the Indian market. Higher oil prices are detrimental to a country like India, which imports most of its crude oil.

Asian shares rebounded after a shaky start to the final session of 2022, as the prospect of further interest rate rises next year dampened holiday optimism.

But last week’s data-fuelled recession fears after business surveys showed economic activity in Europe, Japan, and the United States was contracting.

With the end of the year looming and weak economic data doing little to boost sentiment, markets need to figure out where to look for the optimism that has grown US stocks in the last two weeks of December 11 for the past 15 years.

Stocks fell on Wall Street Friday as weak economic data fuelled recession fears. The S&P 500 fell 2%. It has repeatedly failed to hold above its 200-day moving average and is down 20% this year.