surged over 3.8 per cent on Wednesday, April 8, posting their sharpest single-session gain in recent memory, after a last-minute ceasefire between the United States and Iran triggered a global relief rally and sent crude oil prices tumbling.
Major equities across the globe surged between 2 per cent and 6 per cent, with Korea’s Kospi leading the gainers.
The closed at 23,997.35, up 873.70 points or 3.78 per cent, after opening with a gap-up of 731 points. The settled at 77,562.90, adding 2,946 points or 3.95 per cent. Broader markets outperformed the benchmarks — Nifty Midcap and Smallcap indices both advanced over 4 per cent each.
The two-week ceasefire, announced just hours before a U.S. deadline, eased fears over energy supply disruptions and the closure of the Strait of Hormuz.
plunged over 14 per cent, falling below $95 per barrel, with domestic crude futures dropping nearly 17 per cent. The sharp correction in energy prices provided immediate relief on India’s inflation and current account deficit outlook.
, with the Monetary Policy Committee unanimously holding the repo rate at 5.25 per cent with a neutral stance.
The RBI revised its FY27 GDP growth estimate to 6.9 per cent, trimming the first-half forecast by 20–30 basis points due to supply chain concerns, while revising the second-quarter inflation projection upward by 20 basis points. FY27 CPI inflation is now projected at 4.6 per cent.
“…The RBI’s decision to keep the repo rate unchanged at 5.25 per cent with a neutral stance reflects a balanced approach amid global uncertainties,” said George Alexander Muthoot, MD, Muthoot Finance. “…A steady rate environment, coupled with proactive liquidity management, is likely to support continued credit offtake and business confidence.”
Sectorally, the rally was broad-based. Auto and Realty were the top performers, each gaining over 6.5 per cent, followed by banking and financial services, which advanced between 5–6 per cent.
The CPSE index was the lone laggard, ending marginally in the red. The Bank Nifty surged 2,987 points or 5.67 per cent to close at 55,703.90.
Shriram Finance and Adani Enterprises ended as the top two individual gainers on the Nifty, while Coal India and Tech Mahindra bucked the trend, closing with losses.
India VIX, the volatility gauge, dropped over 20 per cent to 19.69, slipping below its 20-day EMA for the first time since February 18 — signaling a meaningful easing of market uncertainty.
On the options front, significant call writing was seen at the 24,000 and 24,200 strike levels, marking them as near-term resistance zones, while put writing at 24,000 and 23,800 highlights a firm base.
The sharp correction in crude prices delivered a broader macro dividend for India. “…as it eases inflationary pressures, narrows the current account deficit, supports the rupee, and strengthens fiscal dynamics,” said Ajay Menon, MD & CEO — Wealth Management, Motilal Oswal Financial Services.
He added that India, which had witnessed record FII outflows in March, stood to benefit meaningfully from the return of risk-on flows into emerging markets.
The Indian rupee staged a sharp recovery, with USD/INR appreciating toward the 92.5 zone, supported by declining crude and improving global cues. Gold rose over 2.4 per cent while silver surged more than 5.5 per cent.
Menon noted that with macro stability now in place, market focus is shifting toward Q4FY26 earnings, where stock and sector differentiation is likely to increase — “…with markets rewarding earnings visibility over liquidity-driven momentum.” That earnings season begins Thursday. JM Financial estimates Nifty50 PAT growth at 4.2 per cent year-on-year for the quarter, led by IT Services, Auto, Metals, and Telecom.
The index has now rallied over 7.5 per cent across four consecutive sessions, raising the possibility of near-term profit-booking around the 24,000 mark. Analysts said the sustainability of the rally will hinge on the progress of ceasefire negotiations, the actual reopening of the Strait of Hormuz, and crude oil price movements.