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Mumbai, April 8: The Indian stock market witnessed a significant surge during Wednesday’s trading session, with major benchmark indices Sensex and Nifty climbing by nearly 4 percent. In early trading, the Sensex soared over 2,800 points, reaching an intraday high of 77,456.11, while the Nifty 50 jumped by more than 800 points to settle at 23,961.25. This bullish trend was reflected across the market, with mid-cap and small-cap stocks also gaining up to 4 percent.
The rapid market movement positively impacted investors’ wealth, as the total market capitalization of BSE-listed companies increased from ₹429 lakh crore to ₹444 lakh crore, resulting in a gain of approximately ₹15 lakh crore for investors in a short span. Meanwhile, the India VIX index, which measures market volatility, fell by over 19 percent, dropping below 20, indicating a reduction in market fear.
The primary driver behind this rally was the announcement of a ceasefire between the United States and Iran. Donald Trump declared that the U.S. would halt military action against Iran for the next two weeks, a proposal that Iran accepted. Additionally, news of upcoming talks between the two nations on Friday has sparked hopes among investors that the ongoing tensions in West Asia may soon be resolved.
A significant drop in crude oil prices also bolstered the market. Brent crude fell nearly 14 percent, dropping below $95 per barrel, providing substantial relief to oil-importing economies like India. The decline in oil prices is expected to alleviate inflationary pressures and support economic growth.
Furthermore, the dollar index fell by over 1 percent, while the Indian rupee strengthened. A robust rupee and a weaker dollar could attract foreign investors back to the Indian market. Experts believe this may lead foreign portfolio investors (FPIs) to resume their buying activities.
Global signals remained positive as well. Following the U.S.-Iran ceasefire, Asian markets experienced a significant upswing, with Japan and South Korea’s markets rising by up to 6 percent, which was clearly reflected in the Indian market.
In line with market expectations, the Reserve Bank of India (RBI) maintained the repo rate at 5.25 percent and adopted a ‘neutral’ stance. This decision aligned with market anticipations and was unanimously approved by the six-member Monetary Policy Committee (MPC) after two days of discussions. The RBI’s decision aims to sustain economic stability amidst current global uncertainties.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
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