Stock Market Update: Nifty Points to Gap-Up Opening Amid Ceasefire and Central Bank Policy Decision
Global Markets Rally as US and Iran Agree to Ceasefire Deal
The Indian stock market is expected to open higher on Wednesday, April 8, following a rally in global markets after the US and Iran agreed to a two-week ceasefire deal. The deal, brokered by Pakistan, is expected to halt American-Israeli military attacks in exchange for Tehran reopening the Strait of Hormuz. The agreement also extends to the fighting between Israel and Hezbollah in Lebanon.
Reserve Bank of India to Announce Monetary Policy
The Reserve Bank of India (RBI) will announce its first bi-monthly monetary policy for FY27 today. The RBI Governor Sanjay Malhotra-headed Monetary Policy Committee (MPC) is widely expected to keep the repo rate unchanged at 5.25%, and maintain policy stance at 'Neutral'.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Asian Markets Surge
Asian stock markets surged on Wednesday morning after news of the two-week ceasefire between the US and Iran boosted investor sentiment. Oil prices plunged sharply following the easing of military tensions in the Middle East and expectations around the reopening of the Strait of Hormuz.
| Market | Movement | Points |
|---|---|---|
| Japan's Nikkei 225 | 5.28% | 2,822.44 |
| South Korea's KOSPI | 5.61% | 308.11 |
| India's GIFT NIFTY | 3% | 23,841.00 |
| Hang Seng | 3.04% | 763.47 |
| Taiwan Weighted Index | 3.72% | 1,234.69 |
Energy Market Selloff
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
The ceasefire news also sparked a sharp sell-off in the energy market. Brent Crude tumbled 13.04% to $95.02 per barrel at 7:24 am IST, while US Crude Oil fell 13.76% to $97.41 during the same period.
Gold Prices Rise
Meanwhile, gold prices moved higher, with the precious metal rising 100.45 points, or 2.13%.
Investor Takeaway
The Indian stock market is expected to open higher on Wednesday, April 8, due to a rally in global markets following a two-week ceasefire deal between the US and Iran.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
