The Nifty snapped its seven-day losing streak on Thursday, while the Sensex ended a four-session slide. The Nifty gained 153.55 points, or 0.64%, to settle at 24,231.85, while the Sensex climbed 628.04 points, or 0.82%, to 77,537.72. However, both indices remain around 0.6% lower for the week.

The rebound was supported by easing global bond yields and a recovery in risk appetite. IT and financial stocks led the recovery, while broader markets also advanced. The BSE SmallCap Select index gained 0.83% and the MidCap Select index rose 0.56%.

However, the underlying market mood remains cautious. Global bond yields have started rising again after the relief from a US Treasury intervention proved short-lived. The US 30-year Treasury yield moved back to around 5.25%, while the 10-year yield stood at 4.71%. Higher yields can increase borrowing costs and reduce the relative attractiveness of emerging-market equities.

Crude oil is another key factor for Indian investors. Brent crude has gained more than 5% this week and was trading around $93.82 a barrel on Friday. The rise has been driven by uncertainty surrounding the US-Iran conflict and disruptions to oil flows through the Strait of Hormuz. Higher energy costs could add to inflationary pressures and weigh on corporate profitability.

“While short-covering after the recent slump could help markets open higher, the undertone remains cautious due to higher crude prices on the West Asian conflict,” said Ankur Punj, managing director at Equirus Wealth.

Foreign investor flows also remain important. FPIs turned net sellers on Thursday, withdrawing Rs 583 crore after buying for two consecutive sessions. Domestic institutional investors provided a cushion, buying equities worth Rs 3,538 crore, according to provisional NSE data.

Investors will watch crude prices, bond yields, global markets, FII-DII flows and developments around the Iran conflict. Key stocks to watch include Manipal Health, RailTel, Saatvik Green Energy and Anant Raj.