Domestic equities are set for a strong opening on April 8, as the announcement of a two-week ceasefire between the US and Iran calmed geopolitical nerves and triggered a global relief rally.
Early indicators suggest a gap-up start for domestic benchmark indices. Gift Nifty, as of 8:00 AM, traded around the 23,815 level, at a premium of nearly 663 points to the previous close of Nifty futures.
US President Donald Trump said on April 7 that he has agreed “to suspend the bombing and attack of Iran for a period of two weeks.”
In a post on Truth Social, he added, "We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate. Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated."
Trump added that he had spoken to Pakistani leaders, who have been mediating between Washington and Tehran and had pushed for the temporary truce.
Iran, as part of the deal, is set to reopen the Strait of Hormuz, a critical shipping route through which one-fifth of world's total global oil supply passes.
"For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations," said Seyed Abbas Araghchi, Minister of Foreign Affairs of the Islamic Republic of Iran.
However, the situation on the ground still remain tense, as Gulf nations reported missile launches, drone movement, and issued safety advisories.
Crude oil prices came down crashing below $100 level after the truce announcement, registering its one of the biggest single-day fall in decades.
At the day's low so far. the Brent crude oil futures was 16 per cent down at $91.72 per barrel, while the West Texas Intermediate (WTI) crude oil futures was down by 19 per cent at $91.11 per cent.
Owing to the development, Japan's Nikkei 225 jumped over 5 per cent, and South Korea's Kospi gained more than 6 per cent, in early trade. Likewise, China's CSI 300 surged over 2.50 per cent, and Hong Kong's Hang Seng quoted higher by nearly 2 per cent. Taiwan's TWSE was up by 4 per cent, while Australia's ASX 200 was up by 2.75 per cent.
The rupee strengthened by 50 paise to 92.56 against the US dollar in early trade on April 8.
At the interbank forex market, the domestic currency opened at 92.92 and moved higher to 92.56 in initial deals, marking a sharp gain from its previous close.
Meanwhile, the US Dollar Index, around 10:00 AM, quoted 1 per cent lower at 98.68.
Meanwhile, the Reserve Bank of India (RBI) is set to conclude its first policy review of FY27 and the first since tensions escalated in West Asia.
RBI Governor Sanjay Malhotra will announce the central bank's six-member monetary policy committee's (MPC) decision on interest rate and policy outlook. The MPC is widely expected to keep the repo rate unchanged at 5.25 per cent, and keep the policy stance 'Neutral'. The RBI had earlier cut rates by 125 basis points since February 2025, in an aggressive easing cycle.
