Nifty 50, Sensex Jump Over 3%; Markets Near Day’s High After U.S.-Iran Ceasefire, RBI Holds Rates Steady

Market Update at 2:29 PM: Indian equity benchmarks surged on Wednesday, with the Nifty 50 and the Sensex trading near the day’s high, supported by a sharp decline in oil prices following the U.S.-Iran ceasefire. Investor sentiment remained upbeat as traders also evaluated the outcomes of the Reserve Bank of India’s latest monetary policy meeting.

The Nifty 50 was trading 3.71 per cent, or 858 points higher, at 23,983.65. Meanwhile, the Sensex advanced 3.87 per cent, or 2,890.12 points, to trade at 77,505.95, reflecting broad-based buying across sectors.

On the policy front, the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the benchmark repo rate unchanged at 5.25 per cent in its April review. The central bank also maintained its neutral policy stance, indicating a balanced approach amid evolving macroeconomic conditions. Consequently, the Marginal Standing Facility (MSF) rate and the Standing Deposit Facility (SDF) rate were also left unchanged at 5 per cent and 5.5 per cent, respectively.

Broader markets outperformed the benchmark indices during the session. The Nifty MidCap index was trading 4.00 per cent higher, while the Nifty SmallCap index gained 4.6 per cent, indicating strong participation beyond Large-Cap stocks.

On the sectoral front, the Nifty Auto index led the gains, driven by positive sentiment across auto stocks. The Nifty Realty index and the Nifty Financial Services Ex Bank index also outperformed, contributing to the overall market strength.

Market Update at 12:23 PM: The Indian equity benchmarks surged sharply on Wednesday, with the Nifty 50 reclaiming the crucial 24,000 mark and the Sensex hitting the day’s high, as global sentiment improved following a steep decline in crude oil prices after a U.S.-Iran ceasefire.

The Nifty 50 was trading 3.8 per cent or 870.95 points higher at 23,994.30, while the Sensex advanced 3.91 per cent or 2,919.14 points to 77,535.72.

Investor sentiment was further shaped by the Reserve Bank of India’s April monetary policy outcome. The Monetary Policy Committee kept the benchmark repo rate unchanged at 5.25 per cent and maintained a neutral policy stance. The Marginal Standing Facility rate and Standing Deposit Facility rate were also left unchanged at 5 per cent and 5.5 per cent, respectively.

Market participants closely tracked the post-policy commentary, where RBI Governor Sanjay Malhotra indicated that the current curbs on forex markets are temporary and will not remain in place indefinitely.

Broader markets outperformed the benchmarks, with the Nifty MidCap index rising 3.96 per cent and the Nifty SmallCap index gaining 4.19 per cent, reflecting strong risk appetite among investors.

On the sectoral front, the Nifty Auto index led the rally, while the Nifty Realty and Nifty Financial Services Ex Bank indices also recorded notable gains.

Globally, sentiment received a boost after U.S. President Donald Trump announced a two-week halt on planned attacks targeting Iran’s power plants and civilian infrastructure. The move came with the condition that Iran ensures full access through the Strait of Hormuz.

Iran’s Foreign Minister Abbas Araghchi confirmed via a post on X that Tehran is halting its military operations, easing geopolitical tensions.

As a result, Brent crude’s April contract plunged 13.05 per cent to USD 95.1 per barrel on the Intercontinental Exchange, as the reopening of the Strait of Hormuz, a key global oil transit route, alleviated supply concerns.

Market Update at 09:35 AM: Indian equity benchmarks rallied sharply on Wednesday morning as global sentiment improved following a ceasefire agreement between the U.S. and Iran, which triggered a steep fall in crude oil prices.

As of 9:16 AM, the Nifty 50 was trading 3.26 per cent or 749.10 points higher at 23,886.70, while the Sensex surged 3.39 per cent or 2,532.95 points to 77,188.19.

The rally came after U.S. President Donald Trump announced that Washington had agreed to halt its planned attacks on Iran’s power plants and civilian infrastructure for two weeks. The decision was conditional on Iran reopening the Strait of Hormuz fully, a key global oil transit route.

Iran’s Foreign Minister Abbas Araghchi also confirmed in a post on X that Tehran would cease its military operations, easing concerns over further escalation in the region.

Back home, investors remained cautious ahead of the Reserve Bank of India’s Monetary Policy Committee decision, scheduled later today. The central bank is widely expected to keep the repo rate unchanged, with market participants closely watching the policy commentary for cues on future rate trajectory and the impact of geopolitical developments.

Broader markets mirrored the benchmark indices’ performance. The Nifty MidCap index rose 3.24 per cent, while the Nifty SmallCap index advanced 3.15 per cent during early trade.

In the commodities market, Brent crude oil’s April contract plunged 13.6 per cent to USD 94.42 per barrel on the Intercontinental Exchange, as the reopening of the Strait of Hormuz alleviated supply concerns.

Meanwhile, precious metals also saw strong buying interest, with gold futures rising 2.14 per cent and silver futures surging 6.4 per cent.

Pre-Market Update at 7:42 AM: Indian equity benchmarks are set for a strong gap-up opening on Wednesday, April 8, tracking a global risk-on rally after a ceasefire agreement between the U.S. and Iran led to a sharp correction in crude oil prices. As of 7:18 am, GIFT Nifty hovered around 23,827, up over 690 points from the previous close of Nifty futures, indicating a robust start for the Nifty 50 and Sensex.

The positive sentiment follows a significant geopolitical development, as the U.S. and Iran agreed to a two-week ceasefire. U.S. President Donald Trump paused planned strikes on Iran after Tehran proposed a 10-point framework for negotiations. Talks between the two nations are scheduled for April 10 in Islamabad. As part of the agreement, Iran assured safe passage through the Strait of Hormuz, easing concerns over global oil supply disruptions.

Crude oil prices reacted sharply to the development, with Brent crude falling 10 per cent to USD 93 per barrel and U.S. West Texas Intermediate (WTI) declining 10 per cent to USD 90 per barrel. The steep fall in oil prices boosted global equities, particularly in Asia, while U.S. stock futures also traded higher on improved risk appetite.

Back home, investor focus will also be on the Reserve Bank of India’s monetary policy announcement scheduled for today. The Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, is widely expected to keep the repo rate unchanged at 5.25 per cent while maintaining a neutral policy stance.

From a derivatives perspective, the Put-Call Ratio (PCR) stands at 1.26, indicating a bullish bias. On the Put side, significant open interest is concentrated at the 23,100 strike, suggesting strong support. On the Call side, heavy open interest is seen between the 23,150 and 23,500 strikes, marking this zone as a resistance band. However, given the strong global cues, the Nifty 50 is likely to open above these levels.

Technically, immediate resistance for the Nifty 50 is placed at 24,000, followed by 23,300. On the downside, key support levels are seen at 22,750 and 23,575.

In the derivatives segment, Sammaan Capital remains under the F&O ban for April 8.

Institutional activity remained mixed in the previous session. Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 8,692.11 crore, marking their 25th consecutive session as net sellers. Domestic Institutional Investors (DIIs), however, provided support, purchasing shares worth Rs 7,979.50 crore.

On Tuesday, Indian markets extended gains for the fourth straight session. The Sensex rose 509.73 points, or 0.69 per cent, to close at 74,616.58, while the Nifty 50 gained 155.40 points, or 0.68 per cent, to settle at 23,123.65.

Globally, U.S. stock futures surged on the ceasefire news, with Dow Jones futures rising 718 points or 1.5 per cent. S&P 500 futures advanced 1.6 per cent, and Nasdaq 100 futures climbed 1.7 per cent. In the previous session, the Dow Jones Industrial Average declined 0.18 per cent, while the S&P 500 and Nasdaq Composite posted marginal gains.

Among key stocks, Broadcom surged 6.21 per cent and Intel rose 4.19 per cent, while Apple declined 2.07 per cent and Tesla fell 1.75 per cent. In healthcare, UnitedHealth jumped 9.4 per cent, Humana gained 7.9 per cent, and CVS Health advanced 6.7 per cent.

In the commodities market, gold prices rose 2 per cent to USD 4,800 per ounce, while silver surged 4.35 per cent to USD 76.23 per ounce, as investors reacted to the geopolitical developments.

Disclaimer: The article is for informational purposes only and not investment advice.