Sensex surges 2,946 points; Nifty near 24,000 in biggest rally of 2026 after US-Iran ceasefire

RBI holds rate at 5.25%. Oil crashes. Rupee gains. Gold falls. A complete market wrap for April 8, 2026.

North Desk Bureau

Chandigarh, April 8

Indian equity markets closed Wednesday with their most powerful single-session rally of 2026, as a midnight ceasefire between the United States and Iran rewrote the global risk calculus overnight, crashing oil prices by their sharpest margin since the 1991 Gulf War and sending every major Indian index into a steep, broad-based surge.

The BSE Sensex settled at 77,562 — up 3.95% from Tuesday’s close of ₹74,616.58, having opened at ₹77,290.63, touched an intraday high of ₹77,635.54 and a low of ₹77,042.15. That is a gain of nearly 2,946 points on the day. The Nifty 50 ended at approximately 23,997, up 3.78%. Bank Nifty surged 5.67%, ending at 55,703.

The RBI, which held its repo rate steady at 5.25% at its morning announcement, added further ballast to a day already supercharged by geopolitical relief and a collapsing crude oil price.

The Night That Changed Everything

Less than two hours before his self-imposed 8 pm US Eastern deadline to launch devastating attacks on Iranian civilian infrastructure, Donald Trump posted on Truth Social that he was suspending the US bombing campaign against Iran for two weeks.

The ceasefire came after Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir proposed the pause and urged Trump to hold back. Iranian Foreign Minister Abbas Araghchi confirmed Tehran’s acceptance, saying Iran would allow safe passage through the Strait of Hormuz during the two-week period.

The market reaction was immediate and historic. It was the biggest single-day free fall in oil prices since the 1991 Gulf War — Brent crude fell roughly 16%, dropping well below $100 a barrel. By Wednesday’s close, Brent crude was trading around $94.93 a barrel.

For India — one of the world’s largest energy importers — this matters enormously. Global markets had been rattled since the US and Israel attacked Iran at the end of February, when Tehran effectively closed the Strait of Hormuz, a key waterway used to transit one-fifth of the world’s oil and gas. Every barrel above $100 had been inflating India’s import bill, weakening the rupee, and stoking inflation fears that had kept investors on the defensive for weeks.

The Session: How It Played Out

Markets opened with an explosive gap-up, roughly 650 points above Tuesday’s close on the Nifty, and held their gains through most of the day before settling marginally off the morning highs. The Indian stock markets recorded a robust performance, with indices rising by almost 4%, following reduced geopolitical risk, the fall in crude oil prices, and strong external market signals.

The rally was broad and decisive. Banking stocks were the standout — Bank Nifty’s gain of over 5% to 55,703 reflected a sector that had been under sustained pressure from FII selling and currency weakness, finally getting the relief it needed. The rupee’s strengthening removed a key drag on banks with significant dollar-denominated exposure.

Asian markets were equally on fire: Japan’s Nikkei rose more than 4% and South Korea’s Kospi gained 6% on the day.

RBI Holds at 5.25%: What It Means

At 10 am, RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee had voted to keep the repo rate unchanged at 5.25% — the second consecutive hold since the last rate cut in December 2025. Since February 2025, the RBI has cumulatively reduced the repo rate by 125 basis points to support economic growth, but that easing cycle is now firmly on pause.

The decision was fully expected. What changed the context was the overnight oil crash — the primary inflation risk the RBI had been watching. The MPC’s central concern had been a supply-side shock: crude oil had surged from around $60 per barrel for much of last year to over $100 since the West Asia conflict began. With Brent now back near $95, that inflation pipeline looks significantly less threatening.

For home loan borrowers: your EMI stays exactly where it is. No change in repo rate means banks have no new signal to reprice lending rates. Any future move — cut or hike — depends entirely on how the next two weeks of US-Iran negotiations unfold.

Rupee Recovers

The Indian rupee appreciated by 50 paise to 92.56 against the US dollar in early trade following the ceasefire announcement. By close, the rupee was trading at approximately ₹92.65 to the dollar — a sharp turnaround from the 93+ levels of recent days when war fears had battered the currency. A stronger rupee directly reduces the cost of India’s oil import bill and eases the RBI’s inflation management challenge.

Gold Falls, Silver Holds: The Fear Trade Unwinds

Wednesday brought a striking divergence in precious metals. Gold fell sharply even as equities surged — the classic “risk-on” rotation where investors move out of safe-haven assets and back into growth assets when fear recedes.

Gold rates today, April 8, 2026:

Today’s gold price in India stands at ₹15,382 per gram for 24 karat gold, ₹14,100 per gram for 22 karat gold, and ₹11,537 per gram for 18 karat gold.

On a per-10-gram basis — the standard benchmark for Indian buyers — that translates to:

• 24K gold: ₹1,53,820 per 10 grams
• 22K gold: ₹1,41,000 per 10 grams
• 18K gold: ₹1,15,370 per 10 grams

Gold has dropped approximately ₹10,900 per 100 grams over the last two sessions for 24K, as the geopolitical premium embedded in bullion prices unwinds on ceasefire news. The fall is significant — gold had been trading near ₹1,65,000 per 10 grams at the height of the war scare earlier this month.

Silver rates today, April 8, 2026:

The price of silver in India today is ₹260 per gram and ₹2,60,000 per kilogram.

Silver held up better than gold. Its dual character — part safe haven, part industrial metal — means it benefits from improved manufacturing and economic sentiment even as the fear premium deflates. With oil falling and input costs easing, silver’s industrial demand outlook actually improves.

Note: Gold and silver rates are indicative as reported by major bullion tracking sources. Retail prices at jewellers will vary and include GST at 3% plus making charges.

Sector Winners and Losers

Aviation — biggest structural winner. Fuel is an airline’s single largest cost. A 16% overnight crash in crude is a direct, material improvement in margins for IndiGo, Air India, and SpiceJet.

Oil marketing companies. BPCL, HPCL, Indian Oil had been absorbing under-recoveries. The margin squeeze eases sharply.

Banking. The day’s standout sector. Bank Nifty’s 5%+ gain reflected relief on multiple fronts — no rate hike signal from RBI, a stronger rupee reducing FII outflow pressure, and improving macro outlook.

IT. Held up well despite the rupee strengthening — a modest negative for dollar-earning exporters, but sector-wide sentiment improved on global stability.

Paints, tyres, FMCG, chemicals. All petroleum-derivative dependent. Input cost outlook improves materially.

Reliance Industries. A more complex picture — lower crude benefits feedstock costs but can compress refining margins. Watch this one closely over coming sessions.

The Caveat: Two Weeks Is Not Peace

Markets bought relief on Wednesday. Resolution is another matter entirely.

Analysts warn that a two-week ceasefire likely means another two weeks of status quo, with barely anything guaranteed to get through the Strait — which could continue to push prices higher again if the larger deal falls apart.

US and Iran are expected to hold formal peace talks on Friday in Islamabad, with Vice President JD Vance likely to lead the American delegation. Those talks — and their outcome — will be the single biggest determinant of whether this rally has legs through the rest of April, or gives way to renewed volatility if negotiations break down.

The next two weeks will be decisive.