Nifty 50 gains as Brent crude retreats but volatility remains
The Indian equity markets saw a relief rally on Monday, with the Nifty 50 gaining 133 points, or 0.60%, to close at 22,555.75. This break in a four-session slide was driven by a pullback in Brent crude prices and weaker-than-expected US jobs data, which eased concerns about a Federal Reserve rate hike.
Brent crude prices slipped to around $100-101 per barrel after the G7 announced plans to release 100 million barrels of oil, potentially leading to near-term consolidation. The weaker US jobs report pushed back expectations of a Fed rate hike, further boosting market sentiment.
Despite the gains, the India Vix rose by 1.47%, ending at 14.67, signaling caution among investors. Analysts warn of continued market volatility in the near term. Technical analysis suggests strong demand in the 22,000-22,200 support zone for the Nifty, with a potential bounce expected in the coming sessions.
ITC led the gainers, while BSE, Shriram Finance, and NTPC also advanced. Broader market indices, such as the Nifty Midcap 150 and Nifty Smallcap 250, rose by 0.5% and 0.4%, respectively. The Sensex closed 0.66% higher at 72,382.47.