Equity benchmark indices began the trade on a weak note on Wednesday.
Halting a three-day rally, the 30-share BSE Sensex fell 251.26 points to 61,730.53. The NSE Nifty declined 78.3 points to 18,269.70.
At 10:28 am, the 30-share BSE Sensex rose 27.68 points to 62,009.47. The NSE Nifty climbed 3.35 points to 18,351.35.
Among the Sensex firms, ICICI Bank, HDFC Bank, HDFC, Mahindra & Mahindra, Bajaj Finserv, UltraTech Cement, Asian Paints and Tata Motors were the major laggards.
“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.
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