Also used as a reply in a conversation, often to express agreement in everyday conversation and in not-so-interesting ones it is used to convey the sense of I'm-actually-listening.
Example 1
"*sigh*"
"Indeed"
Example 2
"And I'm like shut up you fat bitch, yuk , I hate her, she makes me sooo sick"
"Indeed"
(Nodding your head helps)