US market fall can affect the Indian stock market, resulting in illogical, irrational and knee-jerk reactions, when the market will open on Monday, according to industry experts.
According to experts, if stability funds are not in place, then markets will have a knee-jerk reaction, and the downgrade will increase the negative view. L&T Finance Holdings and Tree House Education’s initial public offerings could be affected.
As per the insiders, although the U.S. government has not altered its treasuries risk weights, the downgrade would push the yields of US treasuries up.
Experts are also criticizing US for raising its debt ceiling. The largest holder of US Treasuries is China with 1.16 trillion dollars and the next is Japan worth $ 912.4 billion. When markets open today, China could be the worst affected.
No comments:
Post a Comment