Markets Turn Green: Value Buying, Softer Crude And Lower VIX Drive Recovery

Indian benchmark indices erased early losses and traded in positive territory on Wednesday as value buying at lower levels helped markets stage a sharp recovery. The rebound came despite lingering concerns over foreign institutional investor (FII) flows and global competition for capital, with easing volatility and softer crude oil prices offering support.

At around 10:30 am, the BSE Sensex was up 89 points or 0.11% at 76,098.71, while the NSE Nifty50 gained 44.35 points or 0.19% to trade at 23,958.40. The recovery was notable as the Sensex rebounded nearly 300 points from its intraday lows, while the Nifty reclaimed the 23,950 mark.

Market breadth remained positive with 2,013 stocks advancing against 1,300 declining shares, indicating broader participation in the recovery. Analysts said buying interest emerged at lower levels as investors stepped in after recent bouts of weakness.

Value Buying Supports Recovery

The rebound highlighted the continuation of a familiar market pattern where lower openings and declines are increasingly witnessing buying support.

Volatility also cooled meaningfully during the session. India VIX, widely considered the market's fear gauge, declined 3% to 15.62, indicating easing nervousness among traders.

Analysts noted that as long as Nifty remains above the 23,800 zone, the possibility of further upside remains intact.

Meanwhile, the rupee remained under pressure and opened marginally lower at 95.75 against the US dollar compared with the previous close of 95.68.

Crude Declines Offer Relief

Oil prices remained under pressure, supporting sentiment in domestic equities after elevated energy prices had recently emerged as a major concern.

WTI crude futures declined 1.89% to $92.12 a barrel, while Brent crude slipped 1.63% to $95.09. Analysts attributed the decline to easing supply concerns and profit booking after recent gains.

Lower crude prices are generally viewed positively for India as the country remains heavily dependent on imports. Softer oil prices help ease concerns around inflation, the current account deficit and pressure on the rupee.

Gold futures, meanwhile, traded marginally higher at 4,530.47, rising 0.10% as investors balanced safe-haven demand with stable risk appetite.

Global Markets Continue To Race Ahead

Global markets remained firm, with major indices continuing their rally. South Korea's Kospi extended its remarkable rise and has now doubled in value in 2026, driven largely by gains in technology giants such as Samsung Electronics and SK Hynix. The benchmark index rose as much as 5.1% during Wednesday's session.

The rally has strengthened optimism surrounding global technology and artificial intelligence themes, with several global benchmarks continuing to scale fresh highs.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said India remains relatively subdued as global capital continues to chase stronger-performing markets.

"With S&P 500, Nasdaq and Nikkei setting new records and KOSPI and Taiex getting bought on declines, the bull rally in these markets is showing no signs of losing steam. So long as this trend continues, Indian market will remain on the back foot weighed down by FII selling," he said.

However, Vijayakumar noted that domestic earnings trends continue to provide support.

He said Q4 results have been better than expected, with midcaps outperforming largecaps and profit growth exceeding revenue growth. Pharmaceuticals and fairly valued financials, he added, continue to remain resilient pockets in the current environment.