Global market: SGX Nifty to OPEC+ output cut — key factors that you should know
Global market update: Tech stocks at US stock market continue to ascend last week as tech heavy Nasdaq index appreciated to the tune of 3 per cent in the week gone by. However, global sentiments will be dominated by surprise output cut by OPEC+ countries as crude oil price has ascended more than 5.50 per cent in morning deals in Asian share market. US dollar has once again witnessed buying interest during Monday morning deals as Dollar Index regained 102 levels.
Here we list out major global market triggers that may dictate Indian stock market today:
US stock market
After ease in bank crisis in US, key benchmark indices finished green on Friday at Wall Street. Dow Jones index surged 1.26 per cent, S&P 500 index shot up 1.44 per cent whereas Nasdaq index skyrocketed 1.74 per cent.
On why US stock market surged on last session of FY23, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “US technology shares continued their rally this week as concerns over inflation eased following a modest increase in the Fed’s preferred measure of inflation in February. The personal consumption expenditures price index, which excludes food and energy, rose by 0.3%, slightly below the median estimate. The overall PCE price index rose by 5% from a year earlier, still above the Fed’s 2% target but down from January’s figures. On the other side, the rise in tech shares coincided with a rise in Treasury prices after a volatile quarter marked by bank failures and shifting expectations for interest rates. The two-year yield fell to around 4.05% while the 10-year maturity dipped to 3.48%. The US dollar also gained strength against major currencies.”
Crude oil price
After surprise announcement of output cut by OPEC+ countries on Sunday, crude oil prices surged sharply during early morning deals on Monday. WTI crude oil price surged to the tune of 5.67 per cent in early session and climbed to $80 per barrel levels.
On how crude oil prices would impact Indian markets, Anuj Gupta, Vice President — Research at IIFL Securities said, “It won’t have immediate impact on Indian markets but in case, it sustains in $80 to $90 range for few more sessions, then in that case we may witness some pressure dueto rising concern about CAD (current account deficit) and inflation as India depends heavily on imports to meet majority of its demands.”
Asian share markets
In early morning session, Japanese Nikkei is up 0.45 per cent, Shanghai index ascended 0.24 per cent, Hang Seng went off 0.08 per cent whereas South Korean KOSPI corrected to the tune of 0.05 per cent.
During early morning session on Monday, SGX Nifty today opened higher and the index has been trading in tight range signaling tepid movement in opening bell on Dalal Street.
Speaking on SGX Nifty today, Anuj Gupta of IIFL Securities said, ‘SGX Nifty has given breakout on weekly chart with spurt in volume. So, one should maintain buy on dips as overall bias is still positive.”
US dollar rate today
In early morning session, US dollar witnessed some buying interest that led to rise in Dollar Index. Dollar Index regained 102 levels and has been sustaining above this psychological level.
US bond yield
During morning deals on Monday, US bond yield for 10 years ascended 0.76 per cent to 3.517 levels whereas US bond yield for 30 years appreciated 0.19 per cent to 3.695 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.
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