US stocks closed higher, S&P hit fresh all time highs. Energy stocks led the markets to recover during the last hour of trade. Both Dow and Nasdaq closed just above the flat line, S&P however gained close to 0.24%, the Small cap Russell 2000 also gained 0.41%. USD index recovered some lost ground to trade above 107, 10 year too inched up near 4.55% and cboe vix closed at 15.35. Crude futures gained almost 1.5% as traders turned cautious on Ukraine peace talks following drone attacks on Russian pumping station. WTI moved above 71.80, Brent near 76. Indian markets closed just below the flat line amidst volatility as stocks continued to bleed. Sensex closed 29 points lower and Nifty closed 14 points below the finish line. Mid and Small cap names continued to see investors unwind as participants lacked confidence for the near term. *Indian stocks continued to trade in highly oversold zone. A large part of valuation froth in stocks is now behind SMID names which may continue to offer strong rebound opportunities for stock pickers. Changes in FPI sentiments towards Indian stocks coupled with some bargain hunting at current level may lead to a sharp recovery in stocks if indices maintain the last few days' lows.* (3.48 am IST)