Indian Stock Market Surges Nearly 4% on April 8 as Ceasefire, Crude Oil Crash Boost Sentiment

Indian Stock Market Surges Nearly 4% on April 8 as Ceasefire, Crude Oil Crash Boost Sentiment​

The Indian stock market witnessed a sharp rally on Wednesday, April 8, with benchmark indices Sensex and Nifty 50 closing nearly 4 percent higher, driven by strong global cues, easing geopolitical tensions, and a steep fall in crude oil prices.

The BSE Sensex jumped 2,946 points, or 3.95 percent, to settle at 77,562.90, while the NSE Nifty 50 gained 874 points, or 3.78 percent, ending at 23,997.35.

Broad-Based Rally Lifts Midcap and Smallcap Stocks​

The rally was widespread across segments, with broader markets outperforming benchmarks. The Nifty Midcap 100 and Nifty Smallcap 100 indices surged over 4 percent each, indicating strong participation beyond large-cap stocks.

Market volatility also eased significantly, as the India VIX dropped more than 20 percent to fall below the 20 mark, reflecting improved investor confidence.

Sectoral Indices See Strong Gains Across the Board​

Sector-wise, financials led the rally, with Nifty Bank and Financial Services indices rising nearly 6 percent. Realty and Auto sectors outperformed, gaining up to 7 percent during the session.

Investors Gain ₹17 Lakh Crore in Market Wealth​

The sharp upmove significantly boosted investor wealth. The total market capitalisation of BSE-listed companies rose to ₹446 lakh crore from ₹429 lakh crore in the previous session, adding ₹17 lakh crore in a single day.

Key Reasons Behind the Stock Market Rally​

US-Iran Ceasefire Lifts Market Sentiment​

A major trigger for the rally was the announcement of a two-week ceasefire between the United States and Iran by US President Donald Trump, with Iran also accepting the proposal.

Talks between the two nations are scheduled to begin in Islamabad on Friday, raising hopes of a potential resolution to the West Asia conflict.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the ceasefire has significantly improved near-term market outlook. He noted that the reopening of the Strait of Hormuz and the fall in crude oil prices could support bullish sentiment going forward.

Crude Oil Prices Crash Below $95​

Brent crude prices plunged 14 percent, slipping below $95 per barrel, which provided a strong tailwind to the Indian markets.

Lower crude prices are seen as beneficial for India’s economy, as they help reduce import bills, support the currency, and improve prospects for foreign capital inflows.

Dollar Weakens, Rupee Strengthens​

The dollar index declined over 1 percent to 98.69 amid easing geopolitical tensions and falling oil prices.

At the same time, the Indian rupee strengthened by 50 paise to 92.56 against the US dollar in early trade. A stronger rupee and weaker dollar are expected to influence foreign portfolio investors’ stance on Indian equities.

Positive Global Market Cues​

Global markets also reacted positively to the ceasefire announcement. Major Asian indices, including Japan’s Nikkei and South Korea’s Kospi, surged up to 6 percent, supporting bullish sentiment in domestic equities.

RBI Maintains Status Quo on Interest Rates​

The Reserve Bank of India kept the repo rate unchanged at 5.25 percent and maintained a neutral policy stance, in line with market expectations.

According to Poonam Tandon, Chief Investment Officer at IndiaFirst Life, the central bank’s stance indicates a data-driven approach ahead, with continued support for liquidity and growth, which remains favorable for both equity and bond markets.