Indian Markets Rebound as Oil Prices Dip Below $88

Indian markets opened on a subdued note on Tuesday before recovering in early trade, thanks to easing crude oil prices. The BSE Sensex opened 34.69 points lower at 76,801.09, while the NSE Nifty 50 slipped 3.55 points to 23,992.40.

However, both benchmark indices edged into positive territory in early trade as Brent crude fell 0.84 per cent to USD 87.20 per barrel, dropping below the USD 88 mark. The sharp correction in Brent crude prices is seen as a major positive for market fundamentals and investor sentiment.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, pointed out several factors supporting the ongoing market recovery, including improving monsoon conditions, robust credit growth, and healthy volume growth in sectors such as automobiles. He also noted that the weakening of the chip trade is favourable for India.

However, concerns surrounding artificial intelligence-driven chip trade continue to weigh on global technology stocks, said Vikram Kasat, Head Advisory at PL Capital.