GIFT Nifty Signals Gap-Up Open; Stocks Surge on Iran Truce 

Mumbai, April 8: GIFT Nifty is jumping higher in Tuesday’s early session, suggesting India’s broader markets could open significantly higher today. Improving risk appetite among global investors also comes amid signs of de-escalation between geopolitical foes United States and Iran which has bolstered sentiment just before the Reserve Bank of India’s (RBI) crucial policy review later in the day.

GIFT Nifty was last seen rising more than 750 points or over 3 per cent around 9:07 AM. This moves clears the way for a gap-up open in Nifty 50 as markets respond positively to a potential ceasefire in the Middle East.

Earlier today, US President Donald Trump tweeted that American officials had accepted Iran’s request to postpone military action between the two countries for a period of two weeks. This offer was initially made by Pakistan and Iran Foreign Minister Abbas Araghchi told reporters in Tehran that Iran would hold talks with US and would permit safe passage of ships in Strait of Hormuz during the period of truce.

All eyes will now be on de-escalation talks planned for later in the week in the Pakistani capital Islamabad. But for now markets are breathing a sigh of relief as the truce eases immediate concerns about military conflict in the Strait of Hormuz. As a result, crude prices are likely to stabilise which has boosted risk sentiment globally and in Indian equities.

Closer to home, the RBI’s monetary policy verdict is the main event on Tuesday. Traders will be closely watching the central bank’s commentary on interest rates as well as its revised forecasts for economic growth and inflation. While a major flare-up in tensions between the US and Iran have been avoided for now, analysts reckon any lingering uncertainty about the conflict will influence RBI’s assessment.
Source:  NSEindia.com