Nikkei, KOSPI to US stocks: Global equity heatmap you must know before opening bell of the Indian stock market — Aug 20 | Stock Market News

Global markets today: Following improved risk sentiment amid easing US Treasury yields, global bourses are seeing buying interest. The key benchmark indices of the US stock market finished higher on Wednesday, while Asian markets are witnessing strong buying interest in the early morning session on Thursday. The Japanese Nikkei 225 index is up by more than 1%, and the South Korean KOSPI index skyrocketed 5%. In the Indian stock market, the Gift Nifty live chart is signalling a gap-up opening during Thursday's Opening Bell, with the index up around 140 points from yesterday's spot Nifty 50 close.

On triggers that may dictate global markets' movement, including Dalal Street, Ponmudi R, CEO at Enrich Money, said, “Geopolitical developments, however, remain a key focus for investors. US President Donald Trump has announced the launch of an economic warfare campaign against Iran, keeping tensions elevated and leaving the outlook for the Strait of Hormuz uncertain.”

Amid soaring crude oil prices, the market expert of the SEBI-registered online trading and wealth-tech firm said, “WTI crude oil continues to trade in the $84–85 per barrel range, ensuring that energy prices and their implications for inflation and global risk sentiment remain firmly in focus.”

Ponmudi said that crude oil movements, the easing bond-yield backdrop, and any fresh developments surrounding the US-Iran conflict and the Strait of Hormuz are likely to remain the key factors driving market sentiment through the session.

Many US Federal Reserve policymakers believe that interest rate hikes will be necessary if inflation does not decline, minutes of their July meeting showed on Wednesday, reinforcing expectations of monetary policy tightening ahead.

The bigger story came after the bell, when minutes from the Fed's July 28–29 meeting revealed the central bank's most fractured policy debate in years. The FOMC voted 9-3 to hold rates at 3.50%–3.75%, but three regional presidents—Cleveland's Beth Hammack, Minneapolis's Neel Kashkari, and Dallas's Lorie Logan—dissented in favour of a 25-basis-point hike, with many other officials indicating that further tightening could still be needed if inflation does not cool further.

Here we list out the equity heatmap of the global markets today:

US stocks snapped a three-day losing streak on Wednesday after the Treasury Department said it would increase its buybacks of long-dated government debt, sending yields sharply lower. The Dow Jones Industrial Average and the S&P 500 each gained around 0.2%, while the Nasdaq Composite added roughly 0.16%. The 10-year Treasury yield fell 5 basis points to 4.65%, while the 30-year yield dropped 9 basis points to 5.19% after touching its highest level since 2007 earlier in the week.

Moderna shares surged 176% after positive late-stage trial results for a melanoma vaccine developed with Merck, while Trump paused a threatened 50% tariff on Canadian goods for three days following 11th-hour trade talks with Ottawa.

Pointing towards the US Fed rate hike factor, Ponmudi said, “Markets are now pricing in roughly a one-in-three chance of a September hike, even as July's weak jobs report and softer CPI and PPI prints have strengthened the case for the Fed to remain patient.”

Asian markets are trading higher this morning, with the Kospi up over 6.50% and the Nikkei 225 index up nearly 1.05%, tracking Wall Street's gains as the Treasury's buyback announcement helped ease the bond-market pressure that had weighed on risk assets earlier in the week. Hong Kong's Hang Seng is up over 1%.

The key indices of the Chinese stock market are also trading green during the early morning session on Thursday. The Shanghai index is up by nearly 0.70%, the SZSE Component index is up by more than 1.15%, the DJ Shanghai index is up by 1%, whereas the China A50 index is up by 0.32%.

European equities were largely flat on Wednesday, hovering near a two-week low as elevated oil prices continued to support energy stocks even as they raised questions about inflation and growth. Germany's DAX was down 0.14%, France's CAC 40 slipped 0.09%, while London's FTSE 100 edged up 0.14%.

A selloff in eurozone government bonds, which had pushed long-dated yields to decade highs on Tuesday, paused as the U.S. Treasury market stabilised following news of the buyback programme, offering some relief ahead of the release of the Fed minutes.

The Gift Nifty live chart indicates a big gap-up opening on Thursday, with the index trading around 140 points higher than yesterday's spot Nifty 50 close.

Expecting a big gap-up opening for the Indian stock market, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said, “Indian equities are poised for their strongest opening in more than a week as an improvement in global risk sentiment provides a welcome boost after several sessions of sustained weakness.”

Speaking on the outlook for the Nifty 50 today, Ajit Mishra, SVP — Research at Religare Broking, said, “The Nifty 50 index has tested its trendline support around 24,000 after seven consecutive sessions of decline. A decisive break below this level could extend the correction towards the 23,650–23,800 zone. On the upside, the 24,200–24,400 region is expected to act as a strong resistance band in case of a rebound."

On the outlook of the Bank Nifty today, Vatsal Bhuva, Technical Analyst at LKP Securities, said, “The Bank Nifty index tested the crucial support of 57,000, where buying interest emerged; however, the index made a fresh five-session low, indicating weak sentiment amid ongoing consolidation. Trading below both its 200 DMA and 50 DMA further reflects weakness. On the hourly chart, a positive divergence is visible, which could support a bounce towards the range resistance of 57,800–58,000. Nevertheless, a cautious stance should be maintained on both sides until a decisive breakout occurs. Support is placed at 57,000, while resistance is seen at 57,800 and 58,200 levels.”

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.

Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).

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