Global markets: SGX Nifty to Dow Jones — key triggers for Indian stock market today

Global market today: As Q4 results season heating up and US dollar easing after the bounce back from one year low, US stock market traded in tight range on Monday deals but managed to end higher.

In early morning deals, most of the Asian stock market feel the sell off heat as investors await the key economic data of China.

Except Japanese Nikkei, most of the Asian bourses traded red during early morning session.

Signaling muted opening for Indian stock market today, SGX Nifty today in a tight range of near 60 points.

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

US stock market

As investors await key results now, US stock market witnessed range-bound trend on Wall Street but key benchmark indices managed to finish on higher note.

Dow Jones index added 0.30 per cent, S&P 500 index gained 0.33 per cent whereas tech heavy weight Nasdaq went up 0.28 per cent on Monday.

The risk-reward for equities does not look attractive into the second half in light of risk-free hurdle rate at 5%,” a team of strategists at JPMorgan Chase & Co., including Marko Kolanovic, wrote in a note.

The main disconnect revolves around the hopes of a soft landing with inflation coming down quickly.

US dollar rate

US dollar remained steady during early morning deals and Dollar Index continues to trade above 101 levels.

During early morning session in Asian stock market trade, Dollar Index went off 0.04 per cent to 101.750 levels.

On USD vs INR, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, “We expect Indian Rupee to trade with a slight negative bias on strong Dollar and elevated crude oil prices.

Weak domestic markets may also weigh on Rupee. However, sustained FII inflows and cooling inflation may support Rupee at lower levels.

Traders may remain cautious ahead of Empire State Manufacturing Index data from US. USDINR spot price is expected to trade in a range of ₹81.50 to ₹82.50 in the near term.

SGX Nifty today

Signaling muted opening for Indian stock market today, SGX Nifty is trading sideways to negative in tight 60 points range as most of the Asian stock market is eagerly awaiting China GDP, retail sales and industrial production data release, which is expected today.

“SGX Nifty is expected to remain range bound today as investors are awaiting Chinese economic data release today.

One should maintain buy on dips strategy and avoid taking short position as overall trend is sideways to bullish,” said Anuj Gupta, Vice President — Research at IIFL Securities.

Asian stock market

Most of the Asian stock markets, except Japanese Nikkei, is trading red as investors are awaiting Chinese GDP and other important economic data release. Japanese Nikkei is up 0.67 per cent, Shanghai index is down 0.20 per cent, Hong Kong’s Hang Seng is down over 0.80 per cent while South Korean KOSPI went off 0.19 per cent during early morning session.