manufacturing pmi

Dalal Street anticipates a busy week driven by the RBI's interest rate decision, key economic data, and global developments like the US-Iran situation and crude oil prices. Investors will closely track manufacturing and services PMI, GDP growth, and foreign exchange reserves for market direction.

India's economy shows 'cautious resilience' despite global headwinds like Middle East conflict and rising oil prices. While manufacturing and services remain strong, and forex reserves offer a buffer, inflation concerns are mounting due to wholesale price surges. A weaker monsoon could further challenge growth and rural demand.

Indian stock markets are poised for a volatile week, with state election results and elevated crude oil prices due to West Asia tensions taking center stage. Investors will closely monitor the impact of these factors on inflation, the rupee, and corporate earnings. Key economic data and corporate announcements are also expected to influence market movements.

Gold price prediction today: Gold prices are expected to continue seeing volatility in the near-term, says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan.

Markets brace for a crucial week as investors await state election results, with potential impacts on sentiment. Developments in the West Asia conflict and their influence on crude oil prices remain a significant concern for India's import-dependent economy. Key economic data and Q4 earnings will also shape market movements.

Global tensions in West Asia, particularly around the Strait of Hormuz, are driving market volatility and influencing crude oil prices. Investors are also closely watching corporate earnings, with key results due this week, alongside crucial US economic data and the Federal Reserve's policy decision.

For RBI the situation is clear: The resilience of the global economy, already inflicted with trade tensions, is being tested by the conflict in West Asia. The biggest takeaway from the RBI bulletin is that India’s domestic supply chains may come under risk from a prolonged war scenario, though strong macroeconomic fundamentals provide a buffer.

India's manufacturing sector experienced a slowdown in March, with growth moderating due to rising costs, intense competition, and global uncertainties like the Middle East conflict. While new orders and output saw slower expansion, employment surged, and export demand remained robust, indicating a mixed but resilient industrial landscape.

Higher-than-usual March rainfall tempered India's power demand growth to 1.7%, despite record consumption. Softer demand and ample supply led to lower electricity prices in the short-term market. Renewable energy generation continued its upward trend, while coal remained dominant in power generation.

The country's manufacturing sector activity in September remained unchanged amid subdued demand conditions both domestically as well as externally, a monthly survey said on Tuesday. The IHS Markit India manufacturing pmi was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018.

India's economy shows strength with robust domestic demand and positive high-frequency indicators. Auto sales and credit growth are up. GST collections remain steady. Manufacturing activity is improving. Labour markets are showing signs of strengthening. Corporate revenues are holding up. Financial flows are supportive. However, Middle East tensions create global uncertainty and a risk of stagflation.

Gold price prediction today: Gold is trading as a risk asset and not a safe haven asset, says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan.

The manufacturing sector was hit the hardest, with its PMI dropping to a four-and-a-half-year low of 53.8 from 56.9. Heightened uncertainty and volatility linked to the Middle East conflict weighed on sentiment.

The February PMI data pointed to an improvement in overall operating conditions for the 20th straight month. In PMI parlance, a print above 50 means expansion while a score below 50 indicates contraction.

Global investment firm KKR is injecting up to $310 million into India's electric mobility sector, marking its first climate transition investment in the country. The funding will bolster PMI Electro Mobility and its electric bus platform, Allfleet, enabling the expansion of a significant e-bus fleet. This strategic move underscores India's growing importance in global decarbonisation efforts.