Markets Rebound As Oil Prices Drop Over Trump’s Remark

Mumbai, March 10: Indian equity benchmarks opened higher on Tuesday, tracking a rebound in global markets and a sharp retreat in crude oil prices. At 9:20 am, Nifty was trading 114 points higher at 24,158. Meanwhile, the BSE was trading at 77,963, gaining 368 points.

A key relief for markets has come from oil. Brent crude slipped below the psychologically important $100 a barrel mark, while US West Texas Intermediate crude plunged nearly 10% after US President Donald Trump said the Iran conflict could end soon. The cooling in oil prices has eased fears of a prolonged supply shock that had rattled global financial markets.

However, volatility linked to the ongoing Middle East conflict is likely to keep investors cautious. Earlier, derivatives market had already suggested a rebound. GIFT Nifty was trading at 24,363, pointing to gains for the Nifty 50 at the open after the index closed Monday’s session 1.74% lower near the 24,000 mark. Earlier on Monday, the Nifty50 ended 1.73%, or 422.40 points, lower at 24,028.05, while the Sensex settled down 1.71%, or 1,352.74 points, at 77,566.16.

Wall Street’s overnight rebound and strong moves across Asia are also lending support. South Korea’s Kospi surged over 5 per cent at the open, while Japan’s Nikkei 225 and Australia’s ASX 200 posted solid gains in early trade.

For the Nifty, a breach could trigger a deeper slide towards 23,200. On the upside, sustaining above the 24,000 mark will be key if bulls are to regain control.