Last updated: 17 Aug, 05:13 am IST
Indian markets don't open in a vacuum. When the Dow Jones or Nasdaq fall sharply overnight, SGX Nifty — which trades in Singapore ahead of India — typically shows a gap-down open. This sets the morning tone for Sensex and Nifty 50.
The correlation has increased post-2008, with Indian markets now showing 0.6–0.7 correlation with US markets on a monthly basis. IT stocks like Infosys, TCS, and Wipro are especially sensitive since they derive 60–70% of revenues from North America.