Global market: SGX Nifty, gold price to Credit Suisse share price — key factors that you should know
3 min read 16 Mar 2023, 07:44 AM ISTSGX Nifty today opened lower but soon catch momentum and hit intraday high of 17,144
PremiumGlobal stock market update: Amid growing fear of banking crisis in the US as Credit Suisse share price tumbled over 24 per cent, US stock market continue to trade weak on Wednesday. Dollar Index regained 104 levels and sustained above the psychological levels in early morning deals on Thursday. However, this rise in US dollar failed to stop gold price rally and the precious yellow metal came close to its life time high of ₹58,847 per 10 gm levels on Multi Commodity Exchange (MCX). Giving signs of some relief rally on Dalal Street, SGX Nifty today opened lower but soon catch upside momentum and climbed to intraday high of 17,144 levels.
On reason for weak global stock market sentiments, Deepak Jasani, Head of Retail Research at HDFC Securities said, "An uneasy calm fell on world markets on Wednesday, with efforts by regulators and financial executives to ease contagion fears sparked by the collapse of Banks in the US improving sentiments though investors seemed not sure about how long will this last."
Here we list out important global market triggers that may dictate India stock market today:
US stock market
On Wall Street, Dow Jones index lost 0.87 per cent, S&P 500 index corrected 0.70 per cent. However, tech heavy weight Nasdaq index attracted some buying interest and ended 0.05 per cent higher.
Asian stock markets
In early morning session on Thursday, the Japanese Nikkei declined to the tune of 0.91 per cent, Shanghai index advanced 0.60 per cent, Hang Seng climbed over 1.50 per cent whereas South Korean KOSPI went off 0.08 per cent.
SGX Nifty today
Signaling some relief rally on Dalal Street, SGX Nifty today opened lower but soon attracted buying interest and climbed to intraday high of 17,144 levels.
"This market is an ideal sell on rise market where one is advised to sell around resistance levels and book profit near support as 16,800 is immediate support for the index while 17,050 and 17,200 are two crucial resistance for SGX Nifty today," said Anuj Gupta, Vice President — Research at IIFL Securities.
Credit Suisse crisis
Credit Suisse share price hit fresh all-time low on second successive day on Wednesday as its major shareholders declined to pump further money into the Switzerland's second-biggest bank. After opening upside at 2.28 Swiss Frank per share on Wednesday morning deals, Credit Suisse share price corrected heavily and slipped below 2 Swiss Frank within few hours of trade and went on to hit new life-time low of 1.55 Swiss Frank per share. Credit Suisse share price ended over 24 per cent lower at 1.70 Swiss Frank per share.
US dollar to INR
US dollar gained some buying momentum on Wednesday and regained the psychological 104 levels. In morning deals on Thursday, Dollar Index sustained above 104 levels despite some profit booking during Thursday deals.
Speaking on US dollar to INR, Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas said, "We expect Rupee to trade with a negative bias on risk aversion in global markets and expectations of a recovery in Dollar. Fresh FII outflows may also weigh on Rupee. There are rising odds of a 25-bps rate hike by Fed in its FOMC meeting next week. Traders may take cues from trade balance data from India and Empire State Manufacturing Index, PPI and retail sales data from US. Investors may remain vigilant amid contagion concerns from the US banking crisis. USDINR spot price is expected to trade in a range of ₹82 to ₹83."
Gold rate today
Gold price in domestic market came close to its life time high of ₹58,847 per 10 gm levels when it hit intraday high of ₹58,661 levels on MCX. However, the precious metal finished at ₹58,338 per 10 gm levels, logging to the tune of 1.50 per cent rise on Wednesday. In international spot market, gold price is down by near 0.41 per cent to 1,910 per ounce levels.
US bond yield
In early morning session, US 10 year bond yield was down 0.21 per cent at 3.487 whereas US 30 year bond yield was down 0.42 per cent at 3.672 levels.
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