US deal to have positive impact on Indian IT: Wipro

The US debt deal is likely to have a positive impact on Indian IT companies in the long-run, Wipro executive director and CFO Suresh C Senapaty said on Wednesday.

The US debt deal is likely to have a positive impact on Indian IT companies in the long-run, Wipro executive director and CFO Suresh C Senapaty said on Wednesday.

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“I cannot comment on the short-term, but in medium- to long-term it will have a positive impact on the Indian IT companies. The US-based companies or organisations will have more cost management in mind,” Senapaty said at a function organised by industry chamber CII in Kolkata.

Meanwhile, China, the biggest foreign owner of the US treasury securities, asked Washington to handle its debt issue responsibly, warning that any “large fluctuations and uncertainties” would undermine the stability of global financial system and hinder economic recovery.

Reacting to a last-minute debt deal clinched by US President Barack Obama that averted a global economic catastrophe, the Governor of the People’s Bank of China, Zhou Xiaochuan welcomed it and noted that the US treasuries had been among the most actively invested and traded instruments in the global market.

China is the largest foreign holder of US treasury securities, with its combined holding of US government debt topping $1.15 trillion by May.

At the same time, the US government will borrow $72 billion in debt auctions next week now that Congress has raised the US’s borrowing limit.

The Treasury Department says it will sell 3-year notes, 10-year notes and 30-year bonds to raise the money. About one-third will go to repay debts that are due on August 15. Reuters/PTI