Global markets: SGX Nifty to US inflation data — key triggers that may dictate Indian stock market today

Global market today: US stock market surged after ease in inflation data as YoY April 2023 data slipped below 5 per cent to 4.90 per cent. US dollar eased in early morning deals in Asian stock market today but Dollar Index continues to trade above the crucial 101 mark. In early morning deals, gold rates today witnessed buying interest while crude oil price remained sideways to positive. Signaling high volatility when Indian stock market opens today, SGX Nifty today opened higher and it has been trading in long 140 points range.

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

US stock market

After ease in US inflation data, Wall Street indices surged northward as two out of three key indices finished in green zone. Dow Jones Industrial Average went off 0.09 per cent, S&P 500 gained 0.45 per cent whereas tech heavy Nasdaq index surged 1.04 per cent.

US inflation data

According to data from the Bureau of Labor Statistics (BLS) on Wednesday, the US consumer price index (CPI) in April rose 4.9 per cent on an annualized basis. Economists had expected the number to hold steady at the 5 per cent level registered in March.

Speaking on US CPI data, Dhawal Ghanshyam Dhanani, Fund Manager, SAMCO Mutual Fund said, "The US Consumer Price Index (CPI) has shown an increase of 0.4 per cent increase in headline inflation over the last month (March 2023) and a 4.9 per cent increase compared to last year in April. It's worth noting that this is the first time in last two years that annual inflation has fallen below the 5 per cent mark, but it is still considerably higher than the Federal Reserve's target of 2 per cent."

However, SAMCO Mutual Fund expert said that US inflation is gradually moving closer to the US Fed's goal, this news will provide some relief to the equity markets. It is crucial to acknowledge that notwithstanding this relief, the coexistence of high inflation and a robust labour market renders it unlikely for the Federal Reserve to reduce interest rates in June. That being said, possibility of a pause in the rate hikes can't be completely ruled out, which could provide a boost to the equity markets.

Asian stock market today

In early morning session, Japanese Nikkei is down 0.27 per cent, Hong Kong's Hang Seng is up 0.12 per cent whereas South Korean KOSPI appreciated 0.30 per cent.

SGX Nifty today

Signaling positive opening at Dalal Street, SGX Nifty today opened lower at 18,350 and went on to hit intraday low of 18,286 levels. However, the index soon gathered momentum and witnessed buying interest at the lower levels. SGX Nifty pared its morning losses and turned green within few minutes of morning trade session and hit intraday high of 18,423 levels.

Decoding SGX Nifty's trade pattern, Anuj Gupta, Vice President — Research at IIFL Securities said, "SGX Nifty is signaling positive opening on Dalal Street as the index has extended its early morning gains further and the index has been trading in high near 140 points range.

Gold rate today

Gold price today sustained above the crucial $2,010 per ounce support and the precious metal added 0.13 per cent in early morning deals and climbed to 2,032 per ounce levels. However, at one point of time, it was quoting $2,036 levels.

Crude oil price

WTI crude oil price in morning session in Asian stock market is up 0.16 per cent at $72.86 per barrel while Brent crude oil price added 0.25 per cent and hit $76.71 per barrel price.

US bond yield

In early morning session, US 10 year bond yield dipped 0.21 per cent to 3.429 levels while US 30 year bond yield went off 0.14 per cent to 3.794 levels.

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