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Equity Market Review
- India continued to be the best performing global market in May 2023 on the back of strong FII inflow in May and moderation in inflation led by softening in commodity prices.
- India saw a broad-based rally with S&P BSE Sensex & NSE Nifty indices gaining 2.9 per cent each during the month while BSE Mid Cap/BSE Small Cap indices jumped up by 6.4 per cent/5.6 per cent, respectively.
Debt Market Review
- The month of May was marked by concerns over the US government borrowing approaching the debt ceiling levels, the breach of which would have forced the US Treasury to suspend payments from early June onwards.
- Eventually, a bipartisan deal was reached, which resulted in the debt ceiling being suspended until January 2025, thereby easing concerns on this front.
RBI Policy
The Monetary Policy Committee (MPC) came out with their bi-monthly policy statement. The MPC unanimously decided to keep the policy Repo Rate unchanged at 6.50 per cent
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