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

US stock market

On account of cautious sentiment ahead of JP Morgan Chase & CO takeover of the troubled First Republic Bank this week, all three key benchmark indices finished lower on Monday. Dow Jones went off 0.14 per cent, S&P 500 index went down 0.04 per cent whereas Nasdaq corrected 0.11 per cent on Monday deals.

“US stock market was under pressure on looming economic slowdown concerns due to bank crisis in US as Treasury Secretary Janet Yellen on Monday warned that the United States could run out of cash and default on its debt repayments as early as June 1, should the government fail to raise the debt limit,” said Anuj Gupta, Vice President — Research at IIFL Securities.

First Republic Bank share price

Ahead of JP Morgan Chase & Co takeover, First Republic Bank share price crashed to the tune of 46 per cent after the end of Monday session on Wall Street. First Republic Bank stock price lost $1.61 per share on Monday and finished at $3.51 per share on NYSE.

On how First Republic Bank crisis may impact global economy, Ruslan Lienkha, Chief of Markets at YouHodler — a Swiss-based international fintech platform — said, “While the collapse of First Republic Bank doesn’t directly impact the global economy, it raises concerns about the stability of the US banking system. Clearly, the eight rate hikes over the past year have been very painful for small and mid-sized banks in the US—which means the collapse of First Republic Bank is likely not the last one. A potential bankruptcy of the bank could trigger a broader financial crisis in the country, affecting the real estate market and many other related industries—which could have massive implications for the world economy. “

Asian stock market today

Asian stock market today opened mixed as trade begin in various bourses after a gap of stock market holiday on 1st May 2023. In early morning deals on Tuesday, Japanese Nikkei has been fluctuating in between the green and red territory, Shanghai index is trading sideways, Hong Kong’s Hang Seng is up 1.58 per cent while South Korean KOSPI is up 0.77 per cent.

Signaling weak opening on Dalal Street on Tuesday, SGX Nifty opened lower and continued to trade weak in tight 45 points range. SGX Nifty today opened lower at 18,264 and went on to hit intraday low of 18,230.

US dollar rate

After logging marginal gains on Monday, US dollar witnessed profit booking during early morning deals on Tuesday as Dollar Index shed 0.09 per cent to 101.785 levels.

Speaking on US dollar to INR (Indian National Rupee), Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas said, “We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets and fresh inflows from foreign investors. However, strong US Dollar may prevent sharp upside in Rupee. Traders may remain cautious ahead of India’s fiscal deficit and core PCE deflator from the US which is the preferred gauge of inflation used by the US Federal Reserve. We expect USDINR spot to trade in between 81.30 to 82.20 in the near term.”

Crude oil price

In early morning trade in Asian stock market, WTI crude oil price has slipped 0.18 per cent to $75.60 per barrel whereas Brent crude oil price is quoting $79.24 per barrel.

“For the week ahead, crude oil price has immediate support at ₹6050 and then ₹5800 levels on MCX while resistance at ₹6400 levels and then ₹6700 levels. The trend of crude oil is weak and we are recommending sell on higher levels in crude oil prices. Brent crude oil price is trading around $80 per barrel. We are expecting it may test $75 to $73 levels very soon,” said Anuj Gupta of IIFL Securities.

US bond yield

In early morning session, US 10 year bond yield corrected 0.65 per cent and hit 3.551 levels whereas US 30 year bond yield 0.49 per cent to 3.798 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.