GIFT Nifty surges 800 points in response to Trump's ceasefire announcement

GIFT Nifty, an early indicator of how Indian markets are likely to open, surged as much as 800 points in early trade on Wednesday, April 8.

Based on the GIFT Nifty implied opening, the Nifty 50 is likely to begin the session on a strong note.

The rally follows an announcement by US President Donald Trump that he will pause bombings on Iran for a two-week period, subject to Iran unconditionally reopening the Strait of Hormuz during this time.

In a post on Truth Social, Trump said he agreed to suspend military action after requests from Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, provided Iran ensures the “complete, immediate, and safe” reopening of the Strait of Hormuz.

Global cues also turned positive, with Wall Street futures

surging after the close of regular trading on Tuesday, April 7. Dow futures jumped as much as 870 points, while S&P 500 and Nasdaq futures gained around 120 and 500 points, respectively.

During the regular session, the Dow Jones recovered over 370 points from the day’s lows to end near the flat line. The S&P 500 rebounded 80 points, while the Nasdaq recovered 400 points from intraday lows. Both the S&P 500 and Nasdaq closed with modest gains.

Futures had already started rising ahead of Trump’s 8 PM Eastern Time deadline on Tuesday.

Earlier, Pakistan’s Prime Minister Shehbaz Sharif had urged a two-week pause via social media platform X and also called on Iran to reopen the Strait of Hormuz as a goodwill gesture.

Crude oil prices saw the sharpest reaction to the ceasefire announcement. Both Brent and West Texas Intermediate fell up to 17% in early Asian trade, slipping below the $100 per barrel mark.