Global markets: SGX Nifty to First Republic Bank — key triggers that may drive stock market today
2 min read . Updated: 17 Mar 2023, 07:45 AM IST
Premium- Global market update: SGX Nifty today opened upside, which signals gap up opening on Dalal Street, say experts
Global market update: The equity market in the US and Europe gained on Thursday session after European Central Bank interest rate hike by 50 bps and Swiss Central Bank lending credit support to Credit Suisse Bank eased fear of banking crisis in the region. Apart from this, crisis hit First Republic Bank too managed $30 billion bank deposits in rescue. After announcement of 50 bps interest rate hike by ECB, US dollar rates came under pressure and Dollar Index nosedived below 104 levels.
Here we list out important triggers that may dictate Indian stock market today:
US stock market
Wall Street witnessed strong buying interest after ease in banking crisis as Dow Jones ended 1.17 per cent higher, S&P 500 index shot up 1.76 per cent while tech heavy weight Nasdaq skyrocketed 2.48 per cent on Thursday session.
"US and European stocks managed a rebound on Thursday as bank shares rallied after Credit Suisse Group AG said it would borrow money from Switzerland’s central bank and seek to repurchase debt," said Deepak Jasani, Head of Retail Research at HDFC Securities.
First Republic Bank share price
First Republic Bank stocks bounced back from its Thursday low of $19.80 apiece after the news of US' biggest banks like Bank of America, JP Morgan Chase, Citigroup Inc, etc. agreed to deposit $30 billion to rescue the crisis-hit bank. First Republic Bank share price finished around 10 per cent higher at $34.27 per share on NYSE.
Asian stock market today
In early morning session on Friday, the Japanese Nikkei is up 0.62 per cent, Shanghai index added 0.82 per cent, Hang Seng surged 0.85 per cent whereas KOSPI gained 0.55 per cent.
SGX Nifty today
Signaling gap up opening on Dalal Street in opening bell today, SGX Nifty today opened higher at 17,137 levels and went on to hit intraday high of 17,175, Currently, SGX Nifty is quoting 101 points higher at 17,123 levels.
"SGX Nifty today is rising as traders are indulged in short covering on the weekend session. Immediate support for SGX Nifty today is 17,000 while 16,800 is strong and crucial support for the index. Similarly, resistance zone for the index is placed at 17,400 to 17,550 levels," said Anuj Gupta, Vice President — Research at IIFL Securities.
ECB sticks to 50 bps rate hike
The European Central Bank (ECB) on Thursday carried through with a large interest rate increase to planned 50 basis points as promised to cool the economy and tamp down inflation.
US dollar rate
After ECB announced to raise interest rate by 50 bps, US dollar rates came under pressure and Dollar Index nosedived below 104 levels. In early morning session on Friday deals, Dollar Index was 0.14 per cent down at 103.963 levels.
US bond yield
In early morning session, US 10 year bond yield shed 0.06 per cent to 3.581 levels whereas US 30 year bond yield0.11 per cent and hit 3.710 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.