Indian shares subdued as US debt ceiling deadlock fuels caution

Wednesday,   24-May-2023   11:18 AM (IST)

Indian shares erased early losses but remained subdued on Wednesday, as gains in pharma, fast moving consumer goods and media stocks offset losses in high-weightage financials and metals, while concerns over U.S. debt ceiling deadlock weighed on the sentiment. The blue-chip Nifty 50 index was up 0.04% at 18,354.50 as of 10:32 a.m. IST, while the benchmark S&P BSE Sensex rose 0.05% to 62,020.50. Both the benchmarks had fallen 0.4% during the session. Four of the 13 major sectoral indexes declined, with financials losing 0.2%. ICICI Bank Ltd, Housing Development Finance Corporation Ltd and HDFC Bank Ltd were among the top Nifty 50 losers. Metal index, which had jumped over the last three sessions, lost 0.4%. Adani Enterprises Ltd, with a 17% weightage in the index, was down 1.5%. The stock had surged 40% over the last three sessions. Pharma stocks advanced 0.5%, led by Biocon Ltd after the company reported a rise in March-quarter profit while fast-moving consumer goods climbed 0.4%. Rising uncertainty over U.S. debt ceiling talks, nine days ahead of a potential default, dragged Wall Street equities down overnight. Hawkish comments from two Federal Reserve officials also weighed on the sentiment. Asian markets remained subdued. Among individual stocks, Mahindra CIE Automotive advanced more than 7% as 3.2% equity changed hands in block deals after reports said promoter Mahindra & Mahindra Ltd planned to sell 12 million shares in the company. On the other hand, Dishman Carbogen Amcis Ltd tumbled over 10% after reporting a wider loss in the March quarter. Hindalco Industries Ltd lost over 1% and was the top Nifty 50 loser ahead of its March quarter earnings report.