- Sensex and Nifty surged sharply after Trump announced a temporary US-Iran ceasefire
- Nifty rose over 800 points, Sensex gained more than 2,700 points in early trading
- Iran agreed to a two-week ceasefire and reopening of the Strait of Hormuz
Benchmarks Sensex and Nifty rebounded sharply on April 8, after US President Donald Trump announced temporary ceasefire with Iran, easing geopolitical tensions. The ceasefire proposal calls for a two‑week pause in hostilities and the immediate reopening of the Strait of Hormuz. Trump confirmed the decision in a post on Truth Social, stating that he had instructed US forces to stand down, just hours after issuing strong warnings that included references to the “death of a civilisation.”
At 9:55 am, the Nifty was up over 800 points, or 3.49%, at 23,932, while the Sensex surged over 2,700 points, or 3.7%, to 77,362.
All sectoral indices traded in the green, with gains led by the Realty index up nearly 7%, followed by Auto, Bank, and Financial Services.
The recovery extended to the broader indices as well, with Nifty Smallcap 250 gaining by over 3.3%, while the Midcap 150 rose 3.3%.
Here are three reasons why the market is rallying today.
Iran-US Ceasefire
On the 40th day of US-Israel-Iran war, US President Donald Trump said he was holding off on his threatened attacks on Iranian bridges, power plants and other civilian targets, subject to Tehran agreeing to a two-week ceasefire and reopening of the Strait of Hormuz, the waterway through which a fifth of the world's oil is shipped during peacetime.
He also said Iran has proposed a "workable" 10-point peace plan that could help end the war launched by the US and Israel in February. Iran's Supreme National Security Council said it has accepted a two-week ceasefire and that it would negotiate with the United States in Islamabad beginning Friday.
ALSO READ: US-Iran Ceasefire: All You Need To Know About The 10-Point Plan To End War
Oil Prices Slump
The development also weighed heavily on crude prices, with Brent futures slipping nearly 9.7% to trade around $94 per barrel. West Texas Intermediate (WTI) crude, which tends to move more closely with US economic trends and financial markets, saw a steeper decline, falling almost 15% to about $96 per barrel.
Gold futures jumped as much as 2.5% after US President Donald Trump announced a temporary ceasefire and confirmed the cancellation of planned strikes on Iran. Tehran, in turn, agreed to pause hostilities and allow limited safe passage through the Strait of Hormuz for the next two weeks.
Global Market Cues
South Korea's benchmark Kospi index outperformed regional peers, surging 5.3%. Hong Kong markets were poised for a sharp rebound as trading resumed after the holiday break. Hang Seng index futures stood at 25,233, compared with the previous close of 25,116.53. The MSCI Asia‑Pacific index was trading 2.6% higher. Dow Jones Industrial Average futures were up nearly 1,000 points, or 2.1%, while S&P 500 futures rose 2.2%. Nasdaq 100 futures gained 3%, and European stock futures surged as much as 5%.
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