The Nifty and the Sensex opened the week on a bullish word after the vacation weekend and final week’s bullish shut.
Join us as we observe the highest enterprise information by the day.
India’s manufacturing unit restoration stumbled in Nov as COVID-19 fears stay
Is pent-up demand that drove the rebound getting exhausted?
Reuters reviews: “India’s manufacturing recovery faltered in November as coronavirus fears weighed on demand and output, prompting firms to cut jobs for the eighth month in a row, a survey showed.
Asia’s third-largest economy and the second most affected country by the pandemic contracted 7.5% in the July-September quarter, compared to a record 23.9% slump in the previous quarter amid some signs of a recovery in manufacturing, official data showed on Friday.
But the Nikkei Manufacturing Purchasing Managers’ Index , compiled by IHS Markit, declined to 56.3 in November from October’s more than a decade high of 58.9, although it well above the 50-level separating growth from contraction for a fourth month.
Sub indexes tracking overall demand and output indicated robust growth but rates of expansion were the weakest in three months.
“Although the softening of rates of expansion seen in the latest month does not represent a major setback, since these are down from over decade highs in October, a spike in COVID-19 cases and the possibility of associated restrictions could undermine the recovery,” noted Pollyanna De Lima, economics associate director at IHS Markit.
“Companies noted that the pandemic was the key factor weighing on growth during November, with COVID-related uncertainty also restricting business confidence.”
Recent resurgence in infections in some parts of the country pushed local governments to reimpose some restrictions on mobility, threatening the recovery.
Millions have already lost their jobs or suffered pay cuts since the pandemic started and manufacturing firms reduced headcount for the eighth month in a row, a streak not witnessed since the survey began in March 2005.
Meanwhile, the strongest rise in input costs since August forced firms to increase selling prices at the quickest pace in nine months, indicating overall inflation would remain above the Reserve Bank of India’s medium-term target of 2-6%.
That would limit the RBI’s room to ease monetary policy further.
Optimism about the coming 12 months waned for the first time in six months despite rising hopes on the progress of coronavirus vaccines, which has boosted global stock markets to record highs.”
Rupee surges 25 paise to 73.80 towards US greenback in early commerce
The rupee mirrored the bullish begin in shares.
PTI reviews: “The rupee appreciated 25 paise to 73.80 against the US dollar in the opening session on Tuesday, tracking strong domestic equities and sustained foreign fund inflows.
Traders said investor risk sentiment improved on positive macro-economic data on the domestic front, while weakness of the American currency in the overseas market also supported the rupee.
At the interbank forex market, the domestic unit opened at 73.93 against the US dollar and gained further ground to touch 73.80, registering a rise of 25 paise over its previous close.
On Friday, the rupee had settled 17 paise lower at 74.05 against the US dollar.
Forex market was closed on Monday on account of Guru Nanak Jayanti.
Meanwhile, India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on consumer demand bouncing back.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.05 per cent to 91.82.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 7,712.98 crore on a net basis on Friday, according to exchange data.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 258.59 points higher at 44,408.31, and the broader NSE Nifty rose 71.50 points to 13,040.45.
Brent crude futures, the global oil benchmark, fell 1.22 per cent to USD 47.59 per barrel.”
S&P nonetheless sees GDP shrinking by 9% in FY21
S&P Global Ratings on Monday retained its forecast of 9% contraction within the Indian financial system for the present fiscal, saying regardless that there have been now upside dangers to progress, it might look ahead to extra indicators that COVID-19 infections had stabilised or fallen.
S&P, in its report on Asia Pacific, mentioned the Indian financial system would develop at 10% within the subsequent fiscal.
“We project headline consumer price inflation just above the mid-point of the Reserve Bank of India’s [target] range of 2-6% through 2021. One-off factors should ease, including food-supply disruptions… But the pass-through to core inflation, currently near 6%, suggests inflation persistence remains a challenge,” S&P mentioned.
Sensex rises over 120 level in early commerce; Nifty tops 13,000
Yet one other week begins on a bullish word.
PTI reviews: “Equity benchmark Sensex climbed over 120 points in opening trade on Tuesday, as better than expected GDP data strengthened market sentiment amid unabated foreign capital inflows.
The 30-share BSE index was trading 126.62 points or 0.29 per cent higher at 44,276.34.
Similarly, the broader NSE Nifty rose 32.45 points or 0.25 per cent to 13,001.40.
UltraTech Cement was the top gainer in the Sensex pack, rising about 2.5 per cent, followed by Infosys, Sun Pharma, Bajaj Auto PowerGrid, ICICI Bank and IndusInd Bank.
On the other hand, ONGC, M&M, Nestle India, Axis Bank and HDFC were among the laggards.
In the previous session, Sensex ended 110.02 points or 0.25 per cent lower at 44,149.72, and NSE Nifty slipped 18.05 points or 0.14 per cent to 12,968.95.
Equity markets were closed on Monday for Guru Nanak Jayanti.
India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent, official data showed on Friday.
Meanwhile, the output of eight core infrastructure sectors dropped by 2.5 per cent in October, mainly due to decline in production of crude oil, natural gas, refinery products and steel.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 7,712.98 crore on a net basis on Friday, according to provisional exchange data.
Elsewhere in Asia, bourses in Tokyo, Shanghai, Hong Kong and Seoul were trading with gains in mid-session deals.
Stock exchanges on Wall Street ended lower in overnight sessions.
Brent crude futures, the global oil benchmark fell 1.22 per cent to USD 47.59 per barrel.”
‘Passenger vehicle, bike wholesales to decline’
Domestic passenger automobile and two-wheeler wholesales will come down within the subsequent few months as stock ranges stay excessive on the vendor degree, in response to ranking agency India Ratings and Research (Ind-Ra).
The general auto business would, nevertheless proceed, to develop within the subsequent few months, it famous.
“With the festive season now over in India, the rating agency expects wholesale billings to moderate in the next couple of months, given that the inventory at dealer level for passenger vehicles (PVs) and two-wheelers is already at higher than the 21 days recommended by Federation of Automobile Dealers Association (FADA),” Ind-Ra mentioned in a press release.
However, it anticipated the general automotive business to proceed to revive within the subsequent two to a few months, consistent with enhancing financial indicators, it famous.