Indian stock indices remain largely steady on Wednesday
May 24, 2023
New Delhi [India], May 24 : Indian stock market indices traded largely steady on Wednesday morning as the US debt ceiling impasse continues to affect global markets.
Benchmark indices Sensex and Nifty rose a mere 0.1 per each when writing this report.
"Since failure to reach a resolution (regarding the debt ceiling in the US) will have catastrophic consequences for the global economy and markets, a resolution of the crisis at the eleventh hour is the most likely scenario. But markets will be on tenterhooks till then," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The debt ceiling is the amount of money the US government can borrow to pay the nation's bills. US Secretary of Treasury Janet Yellen had said her country could default in early June if the debt ceiling is not extended. But Congress seems to be divided on the consensus to raise the ceiling limit.
However, declining inflation rates in India and a possible repo rate cut by the RBI by the end of 2023 are clear positives for the market.
"The near-term scenario is uncertain but for long-term investors buying high conviction stocks on declines will fetch decent returns," Vijayakumar added.
