Nifty trades above 23,950; PSU bank shares in demand

The key equity barometers traded with major gains in early afternoon trade, driven by a sharp decline in oil prices following the ceasefire agreement between the US and Iran. Market sentiment was further lifted by a strengthening rupee, adding to the overall positive momentum, and was further supported by the RBI's Monetary Policy Committee (MPC) decision. The MPC kept the benchmark interest rate unchanged at 5.25% in its first policy meeting of the financial year 2026'27, under Governor Sanjay Malhotra.

The Nifty traded above the 23,950 mark. PSU bank shares advanced after falling in the previous trading session.

At 12:30 ST, the barometer index, the S&P BSE Sensex, climbed 2,844.86 points or 3.81% to 77,461.44. The Nifty 50 index soared 839.55 points or 3.63% to 23,966.65.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index surged 4% and the BSE 250 SmallCap Index jumped 3.80%.

The market breadth was strong. On the BSE, 3,790 shares rose and 460 shares fell. A total of 127 shares were unchanged.

RBI MPC outcome:

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 5.25% while announcing its first policy decision for FY27 on Wednesday, April 8. The six-member panel, chaired by Governor Sanjay Malhotra, met over the past few days to review key issues. This review comes amid rising geopolitical tensions in West Asia and a weakening rupee. In its last meeting in February 2026, the MPC had kept the repo rate steady at 5.25% after a cumulative 125-basis-point cut in 2025, adopting a cautious 'wait-and-watch' approach focused on stability.

Middle East conflict update:

The US and Iran have reportedly entered a temporary two-week ceasefire arrangement, with Pakistan acting as mediator and Islamabad set to host follow-up talks. The deal appears to be conditional, with the Strait of Hormuz at the center of the discussions; reporting suggests Iran would allow shipping access under military coordination, while the US would pause offensive action. The media outlets describe the broader framework as a proposal under discussion rather than a concluded peace deal, and Iran's 10-point demands ' including sanctions relief, nuclear recognition, and US troop withdrawal ' remain unverified as agreed terms.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 20.42% to 19.65. The Nifty 28 April 2026 futures were trading at 24,008.50, at a discount of 41.85 points as compared with the spot at 23,966.65.

The Nifty option chain for the 28 April 2026 expiry showed a maximum call OI of 44.9 lakh contracts at the 24,000 strike price. A maximum put OI of 48.3 lakh contracts was seen at the 23,000 strike price.

Buzzing Index:

The Nifty PSU Bank index jumped 5.27% to 8,700.45. The index shed 0.71% in the past trading session.

Union Bank of India (up 7.8%), Bank of India (up 6.64%), Bank of Baroda (up 6.34%), UCO Bank (up 6.17%), Canara Bank (up 5.67%), Punjab & Sind Bank (up 5.65%), Punjab National Bank (up 5.35%), Bank of Maharashtra (up 5.35%), Indian Bank (up 5.24%), and Indian Overseas Bank (up 4.8%) surged.

Stocks in Spotlight:

Gail (India) jumped 5.89% after the company said that it has entered into a long-term charter party agreement with Alpha Gas, a leading Greek shipping major, for the LNG carrier Energy Fidelity.

Biocon added 3.78% after the company's subsidiary Biocon Pharma announced the receipt of U.S. Food and Drug Administration (USFDA) approval for Dapagliflozin tablets.

Dredging Corporation of India (DCIL) jumped 6.44% after the company signed a memorandum of understanding (MoU) with Colombo Dockyard PLC, marking a major milestone in strengthening maritime cooperation between India and Sri Lanka.