Markets Rebound as Investors Bet Israel-Hamas Conflict Will Remain Localized

Markets rebounded after initial drop due to Israel-Hamas conflict, rose 1.46% in two days on hopes conflict will remain localized.

Recovery driven by resilience of US economy, declining bond yields, and expectations that conflict won't impact crude prices.

Domestic institutional investors bought stocks worth Rs 3000 crore in last two days.

Global stocks also edged higher on stimulus hopes in China and drop in bond yields before Fed minutes.

Markets could turn if conflict spreads and crude prices cross $100/barrel, impacting oil dependent countries like India.