Indian Markets Rebound as Brent Crude Eases Slightly

Indian equity markets saw a cautious rebound on Monday as Brent crude prices eased slightly, providing some relief to traders. The Nifty 50 index gained 133 points, or 0.60%, to close at 22,555.75, breaking a four-session losing streak. The Sensex also rose 0.66% to end at 72,382.47. ITC led the gains, with BSE, Shriram Finance, and NTPC also contributing to the upward movement. Despite the recovery, the India VIX rose 1.47%, indicating lingering caution among investors.

Analysts attributed the recovery to a pullback from oversold zones and easing global pressures. Brent crude dipped to around $100-101 per barrel following the G7’s announcement to release 100 million barrels of oil, which may bring near-term consolidation. Additionally, weaker-than-expected US jobs data pushed back expectations of a Federal Reserve rate hike, boosting risk appetite. Brent crude futures were trading at $102.5 per barrel, while US 10-Year Treasury yields stood at 5.27%.

Broader market indices also showed gains, with the Nifty Midcap 150 and Nifty Smallcap 250 advancing 0.5% and 0.4%, respectively. Bank and NBFC stocks performed well on expectations of further rate hikes by the Reserve Bank of India. Other Asian markets, including Japan, Hong Kong, and Taiwan, also rose between 0.3% and 2.55% on Monday.

Technical analysts noted strong support in the 22,000-22,200 zone for the Nifty 50. Hitesh Rathi of Angel One highlighted that demand has emerged in this zone multiple times, suggesting the possibility of a bounce in the coming sessions. However, analysts cautioned that markets are likely to remain volatile until global pressures ease.