Global market: SGX Nifty, US dollar to Q4 results — key triggers that may dictate Indian stock market today — 15th May
Global market: SGX Nifty, US dollar to Q4 results — key triggers that may dictate Indian stock market today — 15th May
Today, Indian markets will react to IIP and CPI data, while awaiting wholesale price index data scheduled on May 15. Global trends and Q4 earnings to further dictate the performance.
In past week, Sensex jumped by 454.14 points or 0.74% and Nifty 50 is up by 136.90 points or 0.75%.
Global markets today: SGX Nifty trades lower in the early trade of Monday, hinting at a gap-down start in Indian equities. However, Q4 results bring in more trading opportunities. Global factors are likely to be the focal factors for setting the tone of equities. Asian counterparts traded on a mixed note ahead of Japan and China’s economic data coupled with a host of upcoming U.S. Federal Reserve officials’ speeches. Wall Street clocked a second straight weekly fall, while the US dollar stays firm above the 101 critical mark. Treasury bond yields are unchanged, on the contrary, crude oil prices are under pressure.
Ajit Mishra, VP – Technical Research, Religare Broking said, “Participants will react to the macroeconomic data viz. IIP and CPI data first, which was released post market on Friday. And, the WPI inflation data is also scheduled on May 15. Apart from economic releases, global cues, especially the performance of the US Indices and the trend of foreign flows will also be in focus for cues.”
Here are key factors that will dictate Indian markets today:
SGX Nifty:
At the time of writing, SGX Nifty traded in red at 18,256.5 down by 67.5 points or 0.37%.
This indicates a bearish opening for Indian equities today. However, there is still no shortage of trading opportunities due to Q4 earnings.
On Indian stocks, Rohan Shah, head technical analyst at Stoxbox said, “The markets are likely to open down; SGX Nifty trading lower by 41 points compared to previous closing.”
Stoxbox in its technical report said, “The markets do not appear weak until the Nifty does not close below 18,200. Intraday traders can look for long opportunities only above 18,350 if the closing comes above 18,350 in 15 min chart. Traders can look for fresh shorts only if nifty breaks the 18,200 level & remains below for 15 min to ensure short.”
Key data to watch:
In the Asian market, India is set to release its WPI inflation data on Monday. While China will announce its medium lending facility rate as well today.
In developed markets, Eurozone will announce March factory output data and April total reserve assets.
Notably, retail sales and industrial production are the highlights for US data on May 16. ING’s analysts in their weekly note said, “The former should get a lift from robust auto sales, while the latter will be held back by falling production.”
Further, the UK’s wage growth data is also scheduled for this Tuesday. ING said, “last couple of month’s readings have been more benign, and the Bank’s own business survey points to a moderation in growth.”
So, investors will place their bets ahead of this major data.
Asian markets:
Asian markets traded mixed with Japan’s Nikkei 225 climbing by more than 117 points or 0.4% at the time of writing. However, the Hang Seng index dipped over 100 points, and Australia’s S&P 200 index dipped marginally. But Shanghai Composite Index tumbled by over 1.1%.
Additionally, major economic data from China and Japan along with the Philippines’ central bank rate decision likely to dictate the mood in Asian cues.
Mitul Shah – Head of Research at Reliance Securities said, “The markets are likely to see mild negative opening; SGX Nifty is 35 points lower compared to previous spot Nifty closing. Asian Markets are trading mixed, Nikkei is 0.4% higher while Hang Seng is trading flat.”
US markets:
Last week, on Friday, Wall Street closed in red with all three major indices down.
The Dow Jones Industrial Average down marginally to end at 33,300.62, while similarly, the S&P 500 slipped to close at 4,124.08. It was the tech-heavy Nasdaq that dipped at a higher pace than its counterparts by 0.4% to close at 12,284.74.
In the week that ended on May 12, Dow Jones dipped by 414.53 points or 1.23% week-on-week basis. However, the S&P 500 index’s weekly fall was fractional. Unlike these two indices, the overall weekly performance of the Nasdaq index was higher by 53.06 points or 0.43%.
US dollar:
In the early deals of Monday, the US dollar traded at 102.72. The DXY index is currently range-bound between 102.67 – 102.75 with technical sentiments being between ‘Buy’ to ‘Strong Buy’ as per Investing.com.
In the past week, the DXY Dollar index struck its biggest weekly gain since February as investors parked their bets in the safe havens amidst risks revolving around the U.S. debt ceiling and monetary policy. The dollar saw more than 1% upside last week.
Crude oil prices:
Oil prices tumbled for the fourth consecutive week with a downside of 1.5% on a week-on-week basis. Last week, on Friday, Brent crude futures finished at 1.1% lower to $74.17 per barrel while the US West Texas Intermediate (WTI) dipped by 1.2% to end at $70.04 per barrel.
Investors’ bearish tone was split between fears about supply and renewed concerns about an economic slowdown in major countries like the US and China. Also, a stronger dollar dampened the mood in oil prices.
US futures:
US futures traded lower, but the downside is at a slower pace. Dow Jones Futures marginally lower to trade at 33,332, and S&P 500 futures in red at 4,135.25.
Bond yields:
The US treasury yield for the 10-year benchmark is currently at 3.4700% broadly unchanged after gaining 6 bps on Friday last week. Meanwhile, two-year notes are at 3.9914, after advancing by 10 bps in the previous trade.
Gold rates:
The spot gold traded at $2,011.04 per ounce, while US gold futures dived by 0.2% to trade at $2,015.10 per ounce. Broadly, the performance is flat in bullion as the upside in the US dollar makes greenback-priced bullion less attractive for foreign investors. However, bullion saw support from wider economic uncertainties and expectations of a pause in interest rates by the Federal Reserve going forward.
Q4 earnings:
Companies like Suryoday Small Finance Bank, Kalyan Jewellers, Pfizer, PVR Inox, Subex, Skipper, Goodluck India, Coromandel International, Century Plyboards, Emkay and among others will announce their Q4 results today.
#modernbusinessamerica #modernbusinessnetwork #modernglobalnews #america #business #news #article #economy #startup # money #health #market #stock
