Global market: SGX Nifty to US Fed – key triggers for Indian stock market today

In its largest daily percentage drop since March 13, the KBW regional banking index dropped 5.5%. It dropped to its lowest point during the session since November 2020.

The Indian market is expected to open down by about 60 points today as indicated by SGX Nifty trading, which signals a gap-down opening.

Here we list out key global market triggers that may dictate Indian stock market today:

US stock market 

After First Republic Bank was seized and put up for auction, US regional banks continued to experience losses from Monday. In a deal handled by the Federal Deposit Insurance Corp., JPMorgan Chase & Co. acquired the majority of its assets. The S&P 500 energy sector experienced the largest decline of any major sector—4.3%—followed by a 2.3% decline in S&P financials.

Oil prices and energy shares both fell as a result of investors’ concerns over a likely US debt default. 

Following a strong quarter in which sales and profit exceeded forecasts, Starbucks Corp. fell on Tuesday after the coffee chain reaffirmed its guidance for the entire fiscal year. This cautious move seemed to let Wall Street down. Comparable sales increased 11% in the three months that ended on April 2, exceeding analysts’ expectations of a 7.3% increase.

The Nasdaq Composite slid 132.09 points, or 1.08%, to 12,080.51; the S&P 500 lost 48.29 points, or 1.16%; and the Dow Jones Industrial Average dropped 367.17 points, or 1.08%, to 33,684.53.

Asian stock market

Prior to the Federal Reserve’s meeting on Wednesday, when policymakers are anticipated to hike interest rates, shares in Asia are predicted to decrease after Wall Street slumped on renewed worries about the banking industry.

In early Asian trading, equity futures in Japan, Australia, and Hong Kong all fell as US contracts dipped lower.

SGX Nifty today 

SGX Nifty, a leading indicator of the Sensex and Nifty, two Indian benchmarks, declined on Wednesday by 0.39% to 18,149.5, signalling a sluggish start for Dalal Street.

US FOMC decision

The Fed is anticipated to announce a 25-basis point rate increase on Wednesday, and investors are watching for any cues from the institution about whether this would be the final rate hike for the time being or if additional hikes may be possible if inflation remains high.

Crude oil price 

After falling by roughly 5% to a five-week low in the previous session, oil prices continued to decline on Wednesday as investors anticipated more interest rate hikes this week that might lower energy demand.

By 00:15 GMT, Brent futures were down 13 cents, or 0.2%, to $75.19 per barrel, while West Texas Intermediate crude (WTI) was down the same amount to $71.53.

US Treasury yields 

The benchmark 10-year Treasury note yields decreased 14.4 basis points from late on Monday to reach 3.430%. The 2-year note was recently down 15.3 basis points to yield 3.986% from 4.139%, while the 30-year bond was down 10.7 basis points to yield 3.7101%.

Gold Prices

On Wednesday, gold prices remained stable above the important $2,000 mark as investors focused on the US Federal Reserve’s decision on interest rate hikes, which was scheduled for later in the day. After increasing by more than 1% the previous session, spot gold held steady at $2,016.29 per ounce by 01:40 GMT as yields fell due to continued concerns about contagion in the US financial sector. American gold futures increased by 0.1% to $2,026.10.

Dollar Index

A day before the Federal Reserve is anticipated to raise interest rates by an additional 25 basis points, the dollar declined on Tuesday as data revealed that job opportunities in the United States decreased in March.

The dollar index dropped 0.22% to 101.93 from 102.40, its highest level since April 11. The euro increased 0.23% against the dollar to $1.1001 after falling to $1.0940 earlier in the day, its lowest level since April 21.