India’s benchmark index reversed a two-day losing streak to surge higher in early trade on Thursday, tracking gains in global equities following robust US economic data. Profits may be capped, however, by a hawkish tone in the minutes of the Reserve Bank of India’s (RBI) latest policy meeting.

The 30-share BSE Sensex rose 262.59 points to 61,329.83 in early trade, and the broader NSE Nifty50 opened in the green, reflecting optimism among other Asian indices and global risk assets.

Stocks on Wall Street soared after data showed consumer confidence in the world’s largest economy hit an eight-month high in December. However, existing home sales fell 7.7% in November, marking the 10th straight monthly decline and fuelling recession fears.

Asian shares climbed, buoyed by gains on Wall Street and contagion to other global risk assets. But soaring crude prices will likely limit gains in domestic inventories, as India imports more than 85% of its oil needs.

Hawkish comments in the minutes of the Reserve Bank of India’s December policy meeting may also limit gains in domestic stocks.

Most Monetary Policy Committee (MPC) members agreed that the RBI “cannot prematurely pause its rate tightening cycle” while inflation remains “unconscionably elevated”.