Global market: SGX Nifty to US dollar — key triggers that may dictate Indian stock market today — 17th May
3 min read 17 May 2023, 07:10 AM ISTGlobal markets today: Asian stocks kick started Wednesday's session on a mixed note, after Wall Street dropped sharply on Tuesday. SGX Nifty is on a lower note, while sentiment in crude oil prices is cautious. Global trends and Q4 earnings to dictate Indian equities performance today.
PremiumThe sentiment in Indian equities on Wednesday is likely to be driven by feeble global cues as uncertainties around US debt ceiling negotiations continue. However, Q4 earnings will lead to trading opportunities. SGX Nifty traded in the red, while Asian cues are mixed with Japanese shares outperforming counterparts. Wall Street sees a sharp selloff as economic prospects of the US looks gloomier. The dollar is firm, bond yields and gold rates edge up, while crude oil prices are under pressure.
For Wednesday's trade, Ajit Mishra, VP - of Technical Research, at Religare Broking said, "Nifty may witness a further dip however the downside seems capped, thanks to prevailing buoyancy in key sectors. We thus recommend utilizing this phase to accumulate quality stocks till Nifty upholds 18,050."
Here are key triggers from global markets that could dictate the performance of Indian stocks today:
SGX Nifty:
SGX Nifty traded in red on Wednesday tracking a sharp retreat in Wall Street. At the time of writing, the index performed at 18,291 down by 38.5 points or 0.21%. It opened at 18,289.5 and has touched an intraday high and low of 18,418.5 and 18,275 respectively.
This hints toward a gap-down start for Indian equities when they open at 9.15 am on Wednesday.
Read here: Day trading guide for today: Six buy or sell stocks for Wednesday — May 17
Asian markets:
Asian cues traded on a mixed note with Japanese indices continuing their gaining spree as better-than-expected economic growth has fuelled investors' bullish sentiment in the nation.
Japan's Topix index traded at 2,130.55 up by 0.2% at the time of writing, after closing at its highest level in 33 years in the previous session. Nikkei 225 index jumped by 119 points or 0.4% to trade at 29,962.01. This gross domestic product growth of Japan expanded at the fastest pace in three quarters.
Meanwhile, South Korea's KOSPI also picked up by 0.12% to 2,483.12. On the other hand, Australian shares extended their fall.
US futures:
US futures traded modestly in the early deals of Wednesday after President Joe Biden and House Speaker Kevin McCarthy showed optimism when asked about whether the debt ceiling could be reached within days to avoid a default of the United States.
S&P 500 futures were up by 0.11% to 4,127.50. Also, Nasdaq 100 futures rose 0.1%. However, on the Asian front, Hang Seng futures dipped 0.1%.
Wall Street:
On Tuesday, US stocks dived as concerns over possible default of the nation due to debt limit continues, coupled with uncertainties over interest rates, disappointing estimates from Home Depot, and US retail sales data for April that hinted at softer consumer spending.
Read here: Buy or sell: Vaishali Parekh recommends buying in 3 stocks today — 17 May
Dow Jones closed at 33,012.14 down by 336.46 points or 1.01%, while S&P 500 index dipped by 26.38 points or 0.64% to end at 4,109.90. Tech-heavy index Nasdaq Composite saw a much slower-paced downfall to finish at 12,343.05 lower by 22.16 points or 0.18%.
Forex Currencies:
The dollar index traded broadly on a subdued note against a basket of currencies. The DXY benchmark traded at 102.57 and was a little unchanged from the previous print. It ranged between 102.56 - 102.62 mostly.
Similarly, the euro was muted at 1.0866 per dollar, while the Japanese yen was at 136.36 per dollar, offshore yuan at 6.9954 per dollar, and the Australian dollar at $0.6657.
Bond yields:
The US 10-year benchmark treasury yield came in at 3.53%, unchanged from the previous session's print. On the contrary, Japan’s 10-year notes gained by 0.5 bps to 0.395%, and Australia’s 10-year yield also jumped five basis points to 3.45%.
Crude oil prices:
Crude oil prices were under pressure as lacklustre economic recovery in China and the US dampened mood, while offsetting the bullish outlook from the International Energy Agency and positive US data. Also, an unexpected climb in US crude inventories pushed demand worries.
Brent Crude futures traded at $74.60 per barrel, down by 0.4% in the early trade, while the US West Texas Intermediate crude also inched lower by 0.4% to $70.55 per barrel.
Gold prices:
Gold prices held steady ground with investors focussing on the progress in the US debt ceiling, Spot gold traded at $1,992.19 per ounce in early deals on Wednesday, after retreating from its psychological mark of $2,000 per ounce in the previous session. US gold futures, meanwhile, inched higher by 0.1% to $1,995.40 per barrel.
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