Global Markets: SGX Nifty to US Fed meeting – Major triggers for stock market today

Here we list the important global market triggers that can guide indian stock market Today:

american stock market

The US stock market closed lower on Wednesday due to selling in oil and gas, basic materials and financial stocks. On Wall Street, all three major benchmark indices closed down with the Dow Jones index down 0.80 per cent, the S&P 500 down 0.70 per cent, while the tech heavyweight Nasdaq was down 0.46 per cent.

asian stock market today

In morning deals, the Japanese Nikkei rose 0.12 per cent, the Shanghai index 0.05 per cent, Hong Kong’s Hang Seng index 0.52 per cent, while South Korean KOSPI declined 0.51 per cent.

US Fed rate hike

After the FOMC meeting, the US Fed announced a 25 bps interest rate hike, which was in line with what global market observers expected. However, the US Central Bank said that the US banking system Healthy and flexible. But, inflation at high levels is still a major concern for US Federal Reserve,

Announcing the interest rate hike, the US Fed said in a press statement, “The Committee seeks to achieve maximum employment and inflation at 2 percent over the long term. In support of these goals, the Committee decided to raise the target range to 5 to 5-1/4 percent for the federal funds rate.”

The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on reserve balances to 5.15 percent, effective May 4, 2023.

Indicating a muted opening today on Dalal Street, SGX Nifty opened lower at 18,155 and moved to an intraday low of 18,078.

“SGX Nifty is indicating weak opening on Dalal Street. However, my advice would be to buy on dips as the overall trend is still positive and FIIs are continuing to buy. Indian equityAnuj Gupta, Vice President – Research at said IIFL Securities,

US dollar at one month low

Following the announcement of an expected rate hike by the US Fed, a sell-off in the US dollar ensued and the dollar index fell to a one-month low. In the morning session, the dollar index fell 0.24 per cent to 100.870.

On how this will impact the US Dollar versus the INR (Indian National Rupee), Anuj Choudhary, Research Analyst, Sharekhan By BNP Paribas, said, “We expect risk aversion in global markets amid renewed fears over the banking crisis.” Rupee will trade with slight downside bias to avoid downside risks. Concerns over US and global economic recovery. However, weak dollar and extended fall in crude oil prices may cap a sharp decline in rupee. Sustained FII inflows also kept rupee at lower levels. May support Rs. Investors may remain cautious ahead of FOMC meeting and ISM services PMI. Fed is expected to hike interest rates by 25 basis points. Traders may remain cautious ahead of non-farm payrolls data later this week We expect USDINR spot to trade in the range of 81.30 to 82.30 in the near term.

crude oil price

After 25 bps US Fed rate hike, crude oil prices moved further lower as Brent crude oil price hit a 2-month low. morning deals, wti crude The price of oil has made a strong comeback by more than one percent. However, the price of WTI crude oil is still below $70 per barrel. The price of Brent crude oil rose by 1.30 per cent in the early trade of the Asian stock market.

gold price today

Gold prices witnessed strong buying interest and the yellow metal hit a new high of $2,081.80 an ounce in the international market, while hitting a 14-month high in the domestic market after the rate hike by the US Fed on expected lines. reached a high level.

US bond yield

In the morning session, the US 10-year bond yield fell 2 per cent to 3.334, while the US 30-year bond yield declined 0.89 per cent to 3.682.

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