Indian Markets Bounce Back as Soft US Yields Boost Appetite

Technical analysts highlighted that the benchmark Nifty found strong institutional buying near crucial Fibonacci support levels.

"Nifty rebounded cleanly from the crucial 24,060 support zone, forming a bullish reversal candlestick on the four-hour chart near rising channel boundaries," market strategists noted during opening analysis. "A sustained movement above the 24,200–24,260 resistance band could extend this tactical pullback toward 24,380–24,540. Conversely, 24,060 remains the vital line in the sand; a breakdown below it risks dragging the index toward 23,575."

Institutional flow data further cemented the morning's positive backdrop. Provisional exchange filings show that Foreign Institutional Investors (FIIs) extended their net buying stance for a second consecutive session, purchasing equities worth ₹407 crore. Domestic Institutional Investors (DIIs) provided robust support, absorbing supply for the seventh straight session with fresh net inflows of ₹3,973 crore on Wednesday.

Overseas sentiment was bolstered by reports indicating that the US Treasury is considering buyback programs for longer-term government bonds—a move designed to curb benchmark yields and anchor corporate borrowing costs.

The resulting moderation in sovereign yields lifted equities across Asia-Pacific trading floors, tracking overnight gains on Wall Street where the S&P 500 rose 0.21% and the Nasdaq Composite added 0.16%.

Meanwhile, energy markets reflected cautious stability despite persistent Middle Eastern geopolitical friction between Washington and Tehran. Global benchmark Brent crude held steady around $92 per barrel (+0.33%), while US West Texas Intermediate (WTI) crude hovered at $84.52 per barrel (+0.17%).

While market participants welcome the short-term relief, analysts advise monitoring crude price volatility and US rate expectations closely as the Nifty tests key overhead resistance hurdles over the coming sessions.