GIFT Nifty indicates gap up opening as US-Iran agree to two-week ceasefire deal

GIFT Nifty:

The GIFT Nifty April 2026 futures currently traded 705 points lower, suggesting a gap up opening for the benchmark index today.

The Reserve Bank of India (RBI) will announce its bi-monthly Monetary Policy Statement today.

RBI Governor Sanjay Malhotra will announce the decisions taken by the Monetary Policy Committee (MPC) in its first meeting of the financial year 2026-27 at 10 am.

Led by the RBI Governor, the six-member MPC has been deliberating on key aspects such as interest rates, inflation outlook, and growth projections since Monday.

According to media reports, the RBI is likely to keep the benchmark policy repo rate unchanged at 5.25 per cent in the April monetary policy review meeting, as the West Asia crisis is likely to push up inflation.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 8,692.11 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 7,979.50 crore in the Indian equity market on 07 April 2026, provisional data showed.

The FIIs had sold shares worth Rs 35,121.56 crore in April (till 07 April 2026). This follows their cash sales of Rs 122,540.41 crore in March, Rs 6,640.78 crore in February and Rs 41,435.22 crore in January 2026.

Global Markets:

Asia markets rose after Donald Trump said he had agreed to suspend planned attacks on Iran infrastructure for two weeks.

The move was subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, POTUS wrote on a social media platform.

Iranian Foreign Minister Abbas Araghchi in a post on a social media platform, on behalf of the country's Supreme National Security Council, said Tehran's armed forces will cease their defensive operations.'

Trump noted the 2-week ceasefire was subject to Iran agreeing to a complete, immediate and safe opening of the Strait of Hormuz. Araghchi said that safe passage via Hormuz Strait will be possible via coordination with Iran's armed forces for the next two weeks.

Overnight on Wall Street, U.S. stocks ended mixed on Tuesday amid signs of progress ​in negotiations as the minutes ticked down to President Donald Trump's deadline for Iran to open the Strait of Hormuz.

The Dow Jones Industrial Average (.DJI), fell 85.42 points, or 0.18%, to 46,584.46, the S&P 500 (.SPX), gained 5.02 points, or 0.08%, to 6,616.85 and the Nasdaq Composite (.IXIC), gained 21.51 points, or 0.10%, to 22,017.85.

In the last hour of ‌trading, all three major U.S. stock indexes recovered from steep losses earlier in the session after Pakistan's Prime Minister Shehbaz Sharif said on a social media platform that diplomatic efforts for peaceful settlement of the ongoing war in the Middle East were progressing steadily while he urged Trump to extend his Iran deadline for two weeks and requested that Iran open the Strait for the same timeframe as a goodwill gesture.

Domestic Market:

The key equity indices ended Tuesday with gains, extending their recovery for the fourth consecutive session.

The Nifty opened sharply lower and slipped to an intraday low of 22,719.30 in early trade but gradually pared losses through the day. The index saw a steady recovery in the afternoon session, moving into positive territory and closing above the 23,100 mark.

Gains were supported by strength in IT and metal stocks. Volatility remained elevated due to the weekly expiry of Nifty 50 contracts.

Sentiment stayed cautious amid tensions in West Asia and uncertainty around a potential U.S.-Iran deal. Investors also remained watchful ahead of the RBI monetary policy decision on Wednesday, with expectations of a status quo on interest rates.

The S&P BSE Sensex climbed 509.73 points or 0.69% to 74,616.58. The Nifty 50 index soared 155.40 points or 0.68% to 23,123.65. In four consecutive sessions, the Sensex surged 3.70% while the Nifty gained 3.54%.