Home/ Markets / Stock Markets/  Global markets: SGX Nifty to Block Inc shares — key factors that you should know

Global market update: On account of buying in telecom, technology and consumer service stocks, US stock market ended in green territory on Thursday. US dollar is witnessing some relief rally in early morning trade as Dollar Index has regained 102 levels. This may not go down well at emerging markets including Dalal Street. Signalling weak opening on Friday session, SGX Nifty today opened higher but came under the sell off pressure within few minutes of early morning Asian stock market deals.

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

US Stock market

The US stock market shrugged off losses, with traders piling into some of the world’s largest technology companies that are seen by many on Wall Street as a kind of shelter in times of stress and economic uncertainties. Dow Jones added 0.23 per cent, S&P 500 index shot up 0.30 per cent whereas tech heavy weight Nasdaq gained around 1 per cent on Thursday deals. Gains in megacaps like Apple Inc. and Microsoft Corp. put the Nasdaq 100 close to the threshold of a bull market after an almost 20 per cent surge from its December low.

On reason for rally in technology stocks on Wall Street, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, "In the wake of the banking turmoil that has rattled markets and added to recession fears, tech stalwarts have largely outperformed. Banks slumped even after Treasury Secretary Janet Yellen told lawmakers the US would be prepared for further steps to protect deposits if needed. Banks reduced their borrowings only slightly from two Federal Reserve backstop facilities in the most recent week, a sign that institutions are taking advantage of the central bank’s liquidity in the wake of turmoil."

Block Inc share price

After Adani group stocks, Hindenburg Research declared taking short position in Block Inc alleging Jack Dorsey fro misleading the investors. After this announcement by short seller, Block Inc share price came under the sell off heat on Thursday. American multinational technology conglomerate's stock opened with huge downside gap at $60 apiece and went on to hit intraday low of $56.50 per share, around $5 per share away from its 52-week low of $51.34 apiece. Block Inc share price ended 14.82 per cent lower at $61.88 apiece on Thursday.

Asian stock market today

In early morning deals, Japanese Nikkei is down 0.47 per cent, Shanghai index went off 0.51 per cent, Hang Seng gained 0.90 per cent whereas South Korean KOSPI lost 0.78 per cent.

SGX Nifty today

Signaling muted opening on Friday, SGX Nifty today opened higher but came under the heat of profit booking within few minutes of opening bell today. SGX Nifty today opened higher at 17,107 and went on to hit intraday high of 17,231 levels. But, SGX Nifty soon came under the sell off heat and hit intraday low of 17,048 levels.

"One is advised to maintain buy on support levels as short covering ahead of expiry is widely expected and hence bulls are expected to try and take advantage of expected relief rally due to short covering," said Anuj Gupta, Vice President — Research at IIFL Securities.

US dollar rate

After hitting below 102 levels, Dollar Index regained 102 levels due to relief rally caused by short covering ahead of the end of trading hours on Thursday. In early morning deals, Dollar Index has managed to sustain above 102 levels with minor gains.

Speaking on INR vs USD, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, "We expect Indian Rupee to trade with a slight negative bias on weak Dollar amid dovish FOMC may support risk assets. Global equities may also recover on dovish FOMC which may be supportive for the domestic currency. However, selling pressure from foreign investors and month Dollar demand from importers may cap sharp gains in Rupee. Recovery in crude oil prices may also cap the upside. Traders may take cues from weekly unemployment claims, current account balance and new home sales data from US. Traders may also now look forward to Bank of England’s monetary policy. There are expectations of a 25-bps rate hike. USDINR spot price is expected to trade in a range of 81.60 to 82.70."

US bond yield

In morning deals today, US 10 year bond yield is trading tepid whereas US 30 year bond yield is 0.10 per cent up at 3.685 levels.

Crude oil price

Crude price in international market witnessed some buying in morning deals as WTI Crude Oil price ascended 0.20 per cent and hit $75.66 per barrel 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.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 24 Mar 2023, 08:28 AM IST
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