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Business News/ Markets / Stock Markets/  Global markets: SGX Nifty to US Fed rate hike — key triggers that may dictate stock market today

Global markets: SGX Nifty to US Fed rate hike — key triggers that may dictate stock market today

SGX Nifty today opened higher but soon came under the sell off heat

US Fed announced interest rate hike by 25 bps, which pulled down US dollar rates at 7-week low. (AP)Premium
US Fed announced interest rate hike by 25 bps, which pulled down US dollar rates at 7-week low. (AP)

Global market update: US dollar rates hit seven week low and slipped below 102 levels after US Fed rate hike announcement by 25 bps. In early morning deals on Thursday, Dollar Index is under the sell off heat whereas US bond yield has further depreciated. However, US stock market ended lower on Wednesday as all three major indices finished in red territory. Taking cue from the US stocks, SGX Nifty today opened higher but profit-booking triggered soon.

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

US stock market

US stocks ended lower on Wednesday. S&P 500 index crashed 1.65 per cent, Dow Jones lost 1.82 per cent while tech heavy Nasdaq index nosedived 1.60 per cent.

US Fed rate hike

After two days Federal Open Market Committee (FOMC) meeting, the US central bank announced 25 bps interest rate hike that immediately put US dollar under pressure. The US Federal Reserve also announced its concerns about the bank crisis in US that is expected to boost morale of the bulls.

Asian markets

In early morning session on Thursday, the Japanese Nikkei is down 0.48 per cent, Shanghai index is down 0.13 per cent, Hong Kong's Hang Seng is up 0.12 per cent whereas South Korean KOSPI lost 0.32 per cent.

US dollar rate

After US Fed officials less hawkish stance on interest rate hike, US dollar came under the sell off heat and hit 7-week low. Dollar Index clipped below 1102 levels on Wednesday. In early morning deals, Dollar Index is down 0.03 per cent at 101.942 levels.

SGX Nifty today

Signaling tepid opening on Dalal Street today, SGX Nifty today opened higher but soon witnessed profit-booking. SGX Nifty is currently 46 points lower from its Wednesday close.

"SGX Nifty has support placed at 17,000 levels and one should maintain buy on dips at support levels. However, major support is placed at 16,800 levels while 17,200 and 17,400 are the hurdles that SGX Nifty is facing today," said Anuj Gupta, Vice President — Research at IIFL Securities.

Gold rate today

Gold prices witnessed fresh buying after the US Fed rate hike announcement. In early morning session in Asian markets, gold prices have witnessed buying interest by market bulls. In international spot market, gold price today is 0.15 per cent up at around $1,970 per ounce levels.

US bond yield

In US bond market, US 10 year bond yield descended 0.81 per cent to 3.471 levels while US 30 year bond yield tumbled 0.31 per cent to 3.685.

Crude oil price

After slump in US dollar rates, WTI crude oil prices witnessed some buying interest. In early morning session today, WTI crude oil gained 0.16 per cent and hit intraday high of $70.41 per barrel rates in early morning Asian stock market trade.

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.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 23 Mar 2023, 07:56 AM IST
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