Global market: SGX Nifty to bank crisis in US — key triggers that may dictate Indian stock market today

Global market today: Amid new wave of bank crisis in US, key benchmark indices on Wall Street ended lower on Thursday. PacWest Bancorp stock price tumbled to the tune of 51 per cent after the bank confirmed it was exploring strategic options, including a sale. This new wave of banking woes in the US aided the soaring gold and silver rates as both precious metals climbed to a new peak on Thursday.

However, US dollar once again bounced back from its one month lows as Dollar Index regained 101 level on Thursday. SGX Nifty today opened lower and attracted buying interest in the opening bell of Asian stock market today. However, it failed to sustain its morning gains and started coming lower after the profit booking trigger.

Here we list out important global market triggers that may dictate Indian stock market today:

US stock market

Due to fresh row of bank crisis in the US, all key benchmark indices of the US stock market finished lower on Thursday. Dow Jones lost 0.86 per cent, S&P 500 index corrected 0.72 per cent whereas tech heavy weight Nasdaq went off 0.49 per cent.

"Regional banks and tightening credit conditions are weighing on the market as investors try to recalibrate on where we are in terms of credit cycles and bank lending standards, and when a potential recession may hit," said Zhe Shen, Managing Director — diversifying strategies at TIFF Investment Management.

PacWest share price

A new wave of bank crisis in US erupted on Thursday after PacWest Bancorp accepted that it was exploring strategic options, including a sale. This led to sharp decline on PacWest Bancorp stocks. PacWest share price tumbled to the tune of 51 per cent, which triggered sell off in both small and big US banks like JPMorgan Chase, Wells Fargo & Co., etc. Western Alliance Bancorporation stock price crashed 38.45 per cent.

US dollar

US dollar witnessed some bottom fishing as the American currency bounced back once again from its one month low and Dollar Index regained the psychological 101 levels. However, US dollar is again under pressure in early morning deals on Friday as it is down 0.18 per cent to 101.020 levels.

SGX Nifty today

Signaling muted opening with high volatility on Dalal Street indices, SGX Nifty today opened lower and went on to hit intraday low of 18,205 but not before climbing to intraday high of 18,314 mark.

"SGX Nifty is signaling volatility on Dalal Street when it opens for trade. However, I would suggest intraday traders and investors to know their key levels and maintain buy on dips as overall trend is still positive," said Anuj Gupta, Vice President — Research at IIFL Securities.

Asian stock market

In early morning session, Japanese Nikkei has added 0.12 per cent, Shanghai index is down 0.37 per cent, Hong Kong's Hang Seng is up 0.73 per cent whereas South Korean KOSPI went off 0.02 per cent.

Gold rate today

Gold prices remained steady on Thursday and climbed to new peak of ₹61,845 per 10 gm on MCX whereas silver price also ascended to a new high of ₹78,190 per kg levels. In early morning deals in Asian stock market today, both bullions are up with handsome gains.

Crude oil price

In morning deals, WTI crude oil price is 0.25 per cent up at $68.74 per barrel whereas Brent crude oil price is 0.21 per cent up at $72.64 per barrel.

US bond yield

In early morning session, US 10 year bond yield ascended 0.96 per cent to 3.384 while US 30 year bond yield appreciated 00.35 per cent to 3.735 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.