Global financial markets recovered in April 2026 after declines in March, supported by easing geopolitical tensions and improved investor sentiment. According to Quant Mutual Fund's monthly newsletter, US equities rose by about 9.3% during the month, while India's Nifty 50 gained 6.7% after earlier losses. Other major markets also advanced, with Shanghai up 5.6% and Japan's Nikkei 225 rising 11.6%. The recovery was aided by a ceasefire agreement involving the United States, Israel and Iran that was reached on April 8 and later extended indefinitely, though a US naval blockade of Iranian ports remained in place.
Indian government bonds turned higher after a weak opening on Monday, with the recent spike in benchmark yields attracting value buyers. According to The Economic Times, the benchmark Indian 6.48% 2035 bond yield was at 6.9902% as of 10:05 a.m. IST, after closing at 7.0148% on Thursday. Bond yields move inversely to prices, indicating that the market is responding positively to the recent yield increases. As per The Hindu BusinessLine, after the initial jitters, bulls have returned with some confidence as oil, even though elevated, has stabilised.
Early election result trends in the eastern Indian state of West Bengal showed Prime Minister Narendra Modi's Bharatiya Janata Party-led coalition in the lead. As reported by The Economic Times, the state is one of the few in the country that Modi's party had failed to form a government in so far. Three other states and a union territory are also announcing results of elections held last month, with the ruling party's performance in these states being closely watched. According to a trader with a state-run bank quoted by The Hindu BusinessLine, after the initial jitters, bulls have returned with some confidence as election results seem to be favouring the ruling party at the federal government level.
According to The Economic Times, after the initial jitters, bulls have returned with some confidence as oil, even though elevated, has stabilised. Benchmark Brent crude was around $109 per barrel, after hitting $125 a barrel last week. Oil eased after President Donald Trump said he would begin an effort to free up ships stranded in the Strait of Hormuz, even as there was no visible progress in peace talks with Iran. As per The Hindu BusinessLine, after the initial jitters, bulls have returned with some confidence as oil, even though elevated, has stabilised, while election results seem to be favouring the ruling party.
The sharp rise in oil prices is of particular concern for India, which imports nearly 90% of its crude needs. As reported by The Hindu BusinessLine, higher energy costs could inflate the import bill and add pressure to inflation and fiscal deficit. Though there has been a ceasefire since early April, Iran has kept shipping through the strait, a conduit for about 20% of global oil supplies, largely shut. According to The Economic Times, the sharp rise in oil prices is of particular concern for India, which imports nearly 90% of its crude needs, as higher energy costs could inflate the import bill and add pressure to inflation and fiscal deficit.
India's overnight index swap rates eased slightly in line with government bond yields. According to The Economic Times, the one-year OIS rate was at 5.97%, while the five-year OIS rate was at 6.58%. The two-year swap rate was not yet traded, reflecting the current interest rate environment as markets respond to the recent bond market movements. As per The Hindu BusinessLine, India's overnight index swap rates eased slightly in line with government bond yields, with the one-year OIS rate at 5.97% and the five-year OIS rate at 6.58%.
