SGX Nifty to US earnings — key triggers for Indian stock market today

Investors are also keeping an eye on the results of regional US banks after three collapsed last month as lenders face pressure from rising interest rates.

Meanwhile, the Indian stock market oscillated in a narrow range and ended marginally lower, in continuation of Monday’s decline. We are seeing reactions largely based on earnings, in absence of any major event. Banking and financials hold considerable weight in the benchmark and their resilience indicates further room for upside,” said Ajit Mishra, VP – Technical Research, Religare Broking.

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Key global market triggers that may impact Indian stock market today:

US stock market

Wall Street stocks finished little changed Tuesday following a day that saw no major swings. The Dow ended nominally down 0.03 percent while the S&P 500 added 0.09 per cent. The Nasdaq fell 0.04 per cent.

Bank of America climbed 0.6 per cent after reporting higher profits thanks to a boost from higher interest rates, while Goldman Sachs dropped 1.7 per cent following results that were hit by a slowdown in corporate mergers.

“A tale of two very different banking giants has unfolded as Goldman Sachs was hit by a dent in dealmaking, while the good times rolled for Bank of America, which reaped big windfalls from higher interest rates,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown brokerage.

The early quarterly results from S&P 500 companies come as investors have been bracing for a gloomy reporting season, fearing the economy may be on the cusp of a downturn.

“What we are seeing here is the calm before the storm as far as earnings go,” said Brad McMillan, chief investment officer of Commonwealth Financial Network. “The market is just trying to see, do we have some upside here or not, and I think it is really going to come down to earnings over the next couple of weeks.”

Asian stocks

Asian equities opened flat Wednesday after stocks were little changed on Wall Street as investors weighed earnings and comments from Federal Reserve officials who favor continued rate hikes.

Major indexes from Japan to South Korea Australia were little changed while futures for Hong Kong’s key share gauge fell 0.3 per cent. US equity contracts dipped slightly at the start of Asian trading.

The S&P 500 fluctuated before ending just 0.1 per cent higher Tuesday, while the Cboe Volatility Index hit its lowest since January last year, remaining below 17. Bank of America’s GFSI Market Risk Index — a gauge of global volatility across assets — also remained near the lowest level since February last year.

Players will also look to more Chinese data for possible positive signs of expansion.

Investors “expect Chinese activity data to improve further in the next couple of months, given a continued reopening impulse, still-accommodative macro policies and a low base from 2022 Q2,” during the Shanghai lockdown, Stephen Innes of SPI Asset Management wrote in a note.

SGX Nifty flat

Nifty futures on the Singapore Exchange traded 21.5 points, or 0.12 per cent, lower at 17,700. SGX Nifty trading flat against Tuesday’s close, indicates a sluggish start for the Indian market.

Oil prices

Oil prices rose in early Asian trade today as US crude inventories were seen falling and on strong Chinese economic data, signalling strengthening fuel demand.

Brent crude futures gained 7 cents to $84.84 a barrel at 0020 GMT. West Texas Intermediate US crude was up 3 cents to $80.89 a barrel.

Prices got a lift from an industry report showing that US crude stocks fell by about 2.68 million barrels in the week ended 14 April, according to market experts citing American Petroleum Institute figures on Tuesday.

Elsewhere in markets, Bitcoin, the largest cryptocurrency by market valur, held slightly above the closely watched $30,000 level. Gold was flat after halting a two-day losing streak Tuesday.

With agency inputs