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The Iran-US ceasefire triggers market rally as oil crashes 15%, Sensex jumps 2,600 points, rupee strengthens, and Bitcoin crosses $72,500.
The ceasefire in the Middle East conflict is conditional for a two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz.
As the US and Iran have announced a two-week ceasefire, crude oil, equities, gold, bitcoin and the rupee have reacted sharply, triggering a broad risk-on rally across asset classes. While the rupee surged by 50 paise to below the 92 level, the domestic equity market and cryptocurrencies saw a sharp rally. Gold and silver prices also jumped, while crude oil prices saw a sharp correction.
Indian Stock Market Surges
The domestic equities market surged more than 3% on Wednesday as crude oil prices fell around 15 per cent after the US and Iran agreed to a ceasefire. The BSE Sensex surged 2,690 points or 3.6 per cent to trade at 77,320 in the morning trade, while the NSE Nifty was trading higher by 785 points or 3.4% at 23,903.
Rupee Jumps 50 Paise
The Indian rupee opened higher on Wednesday, buoyed by plunging oil prices and the rally in Asian currencies after the Middle East ceasefire. It opened at 92.92 against the US dollar and strengthened further to 92.56 in early trade, up 50 paise from the previous close of 93.06.
Gold, Silver Prices Surge
Gold and silver prices surged up to 4% after the ceasefire announcement, with talks scheduled for April 10 in Islamabad. COMEX gold futures rose 3.46% to trade above $4,846 per ounce, while silver futures jumped 6.60% to cross $76 per ounce.
Crude Oil Crashes 15%
Crude oil prices tumbled around 15% in international markets amid easing geopolitical tensions. Brent crude fell 14.5% to $93.43 per barrel, while WTI crude declined 15.80% to $95.08 per barrel. On the MCX, oil contracts dropped 17.4% to Rs 8,809 per barrel.
Bitcoin Reclaims $72,500
Bitcoin reclaimed $72,500 as investor sentiment improved following the ceasefire announcement. The easing of tensions triggered a relief rally in risk assets, supported by strong institutional inflows, with Bitcoin ETFs recording $471 million in inflows, the highest in six weeks. Additionally, around $400 million in short liquidations amplified the rally.
Bond Yield Eases
Indian bond yields eased around 12 basis points (a basis point is 100th of a percentage point) on Wednesday following the conditional two-week ceasefire between the US and Iran, while the Reserve Bank of India (RBI) kept policy rates unchanged. The yield on the 10-year benchmark bond, 6.48 per cent GS 2035, eased to 6.92 per cent during the morning trade, from 7.04 per cent, according to the Clearing Corporation of India.
Bond market sentiment improved after the ceasefire in the Middle East between the US and Iran, which led to a sharp correction in Brent crude oil prices in the international market reducing the risk of imported inflation for India.
The ceasefire in the Middle East conflict is conditional for a two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz.
This came after more than a month after the US and Israel launched coordinated attacks on Iran, and hours after Donald Trump threatened to wipe out an entire civilisation due to Iran’s defiant posturing.
Separately, RBI Governor Sanjay Malhotra, while announcing the first bi-monthly policy review of FY27, said that despite unprecedented global challenges, the Indian economy is on a “stronger footing” to withstand external shocks.
April 08, 2026, 12:21 IST
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