Sensex up 2840 pts, Nifty reclaims 24k on West Asia ceasefire, RBI policy outcome

The Nifty50 reclaimed 24,000 level and the Sensex was trading at day’s high on Wednesday as oil prices declined following the US-Iran’s ceasefire. Traders assessed the outcomes of the Reserve Bank of India’s policy meeting.

The Nifty50 was trading 3.8 per cent or 870.95 points higher at 23,994.30, and the Sensex was trading 3.91 per cent or 2,919.14 points higher at 77,535.72.

The RBI’s Monetary Policy Committee decided to keep the benchmark policy repo rate unchanged at 5.25 per cent in the April monetary policy review, and retained its current policy neutral stance. Consequently, the Marginal Standing Facility (MSF) rate and Standing Deposit Facility (SDF) rate have also been left unchanged at 5 per cent and 5.5 per cent, respectively.

Broader markets outperformed benchmark indices. The Nifty MidCap and the Nifty SmallCap indices were trading 3.96 per cent and 4.19 per cent higher, respectively.

Among sectors, the Nifty Auto index led gains. The Nifty Realty and the Nifty Financial Services Ex Bank index also outperformed.

US President Donald Trump said that Washington agreed to halt the planned attack on Iran’s power plants and civilian infrastructure for two weeks. The move was contingent upon Iran’s agreement to open the Strait of Hormuz completely.

Iran’s Foreign Minister, Abbas Araghchi, also stated in a post on the X platform that Tehran is ceasing its military operations.

Brent crude’s April contract plunged 13.05 per cent to $95.1 per barrel on the Intercontinental Exchange as the opening of the Strait of Hormuz, a crucial chokepoint, removed the supply challenges.