Global markets: SGX Nifty to Dollar Index — key triggers for stock market today

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

US stock market

As US Fed rate sensitive stocks continued to weigh on Nasdaq and further dip in treasury yield, US stock market ended mixed on Monday. Dow Jones index added 0.20 per cent, S&P 500 index nudged 0.09 per cent but Nasdaq went off 0.29 per cent. Sell off in Microsoft Corp, Tesla Inc and other mega-caps were the major stocks that pulled down tech heavy Nasdaq on Monday.

Speaking on the mixed close on Wall Street, Robert Pavlik, Senior Portfolio Manager at Dakota Wealth in Fairfield — Connecticut said, “People are unsure about what this week holds, especially when it comes to earnings. There’s a lot to be cautious about and today reflects that. There’s not a lot happening.”

US dollar rate

Profit booking in the US dollar triggered after wait and watch for the entire session and Dollar Index came close to one year low of 100.80 levels. In early morning deals, Dollar Index is off 0.05 per cent to 101.025 levels.

On US dollar to INR, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, “We expect Indian Rupee to trade with a positive tone on easing global crude oil prices and positive domestic equities. Dollar may continue to remain weak as overall economic data continues to remain largely weak, leading to increasing concerns over recession. However, hawkish sentiments from FOMC meeting may weigh on risk assets, which may put downside pressure on Rupee at higher levels. Selling pressure from FIIs may also weigh on Rupee at higher levels. Important data from US for the week is US consumer confidence and Advanced GDP, which are expected weaker than previous reading. USDINR spot price is expected to trade in a range of ₹81.50 to ₹82.30 in the near term.”

Signaling gap up opening at Indian stock market today, SGX Nifty opened higher and went on to hit intraday high of 17,805 levels. After near one hour of market opening, SGX Nifty today is trading in long over 100 points rage, signaling big movement on Dalal Street today.

Decoding SGX Nifty’s opening bell movement, Anuj Gupta, Vice President — Research at IIFL Securities said, “Index is looking bullish on chart pattern and it has given trendline breakout that signals further upside movement in upcoming sessions. This means, Indian stock market may expect positive opening today.”

Asian stock market

In early morning session on Tuesday, Japanese Nikkei surged 0.34 per cent, Shanghai index lost 0.42 per cent, Hong Kong’s Hang Seng crashed 1.65 per cent while South Korean KOSPI corrected 1.32 per cent.

Crude oil price

After ease in US dollar rates, crude oil prices witnessed retreat in early morning session on Tuesday. In early morning deals today, WTI crude oil price surged 0.11 per cent to $78.75 per barrel levels. Brent crude oil price added 0.17 per cent and hit $82.47 per barrel mark.

Gold rate today

On account of ease in the US dollar rates against major global currencies, gold rate today added 0.37 per cent and hit $1,989 per ounce levels during early morning session at Asian stock markets.

US bond yield

In morning session on Tuesday, US 10 year bond yield nosedived 1.19 per cent to 3.473 levels whereas US 30 year bond yield dipped 0.79 per cent to 3.700 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.