Global market: SGX Nifty to US dollar — key triggers for Indian stock market today

Global market today: Digesting soft ADP Nonfarm Employment Change data, Us stock market ended mix on Wednesday as Dow Jones finished higher while S&P 500 and Nasdaq ended lower on Wednesday trade session. US dollar continued oscillating around 2-month low as weak US economic data cemented the idea that US Fed may pause its tightening measures in near term. In early morning deals Dollar Index has witnessed some gains but it is still below 102 levels. SGX Nifty today opened lower and continue to trade in tight range signaling sideways opening on Dalal Street.

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

US stock market

Digesting the ADP Nonfarm Employment Change data, key benchmark indices on Wall Street traded mixed on Wednesday. Dow Jones finished 0.24 per cent higher whereas S&P 500 index went off 0.25 per cent and Nasdaq index nosedived over 1 per cent.

"Global stocks mostly fell as hawkish messages from New Zealand and Australian central banks signaled a prolonged fight against inflation and revived concerns about a deeper economic slowdown. Signs of a slowing US labour market also made investors nervous about the economic outlook," said Deepak Jasani, Head of Retail Research, HDFC Securities.

Asian stock market today

In early morning session on Thursday, Japanese Nikkei crashed over 1 per cent, Shanghai index went off 0.22 per cent, Hong Kong's Hang Seng went off 0.15 per cent whereas South Korean KOSPI lost 0.60 per cent.

USD to INR

In early morning deals on Thursday, US dollar continued oscillating around 2-month low. However, some buying interest was witnessed in the US currency as Dollar Index climbed 0.11 per cent to 101.680 levels.

On US dollar to INR (Indian National Rupee), Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Indian Rupee to trade with a positive bias on a weak greenback and positive domestic markets. However, surge in global crude oil prices may cap the upside. Investors may remain cautious ahead of RBI’s monetary policy decision tomorrow. There are expectations of a 25-bps repo rate hike before the central banks takes a pause. Traders may also remain cautious ahead of US ADP employment and ISM services PMI data. Market participants may remain alert ahead of US non-farm payrolls report later this week. USDINR spot price is expected to trade in a range of ₹81.50 to ₹82.50 in the near term."

SGX Nifty today

In early morning deals, SGX Nifty today opened downside at 17,591 levels and went on to dip further and hit intraday high of 17,654 levels. However, profit booking soon triggered and SGX Nifty started falling and went on to hit intraday low of 17,565 within few minutes of Asian stock market opening.

"One should maintain buy on dips as SGX Nifty is still above the breakout range of 17,500. The index is witnessing spurt in volume as well. So, Dalal Street may repeat the same offering buy on dips strategy for intraday traders," said Anuj Gupta, Vice President — Research at IIFL Securities.

US bond yield

In early morning deals on Thursday, US bond yield for 10 years ascended 0.61 per cent to 3.307 levels while US bond yield for 30 years shot up 0.39 per cent to 3.571 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.