The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 57.5 in May from April's 58.8, below a preliminary estimate of 58.4
Trading in the equity market will largely depend on two major events this week - general elections result and the RBI interest rate decision - analysts said, adding that the benchmark indices may rally on Monday on exit polls' prediction of a massive win for the BJP-led NDA and strong GDP data. Exit polls on Saturday predicted that Prime Minister Narendra Modi will retain power for a third straight term, with the NDA expected to win a big majority in the polls. Counting of votes will take place on June 4. "All eyes are now on the most significant event of the past five years the outcome of the Lok Sabha elections, scheduled for Tuesday. Before that, market participants will react to the exit polls on Monday. "The market is approaching the event with caution, and the positive surprise from exit polls can lead to a rally as majority of the exit polls are giving 350+ seats to the NDA. Conversely, a negative surprise from actual results might trigger a knee-jerk reaction in the market,
Driven by robust demand in both manufacturing and service sectors, PMI in April climbed to 62.2 from March's final reading of 61.8
The manufacturing PMI has remained above the 50-mark for more than 30 consecutive months
HSBC Flash India Composite PMI (Purchasing Managers' Index) Output Index rises to 61.3
India's HSBC India Manufacturing PMI came in at 56.9 in February, the fastest since October last year when it was 55.5
That bolstered the view for the coming 12 months with optimism among manufacturers at the highest since December 2022
The export index may have been affected by the Lunar New Year which will fall on Feb. 10 this year, as factories and workers geared up for the pre-holiday shipment of goods
That put the index above the 50-mark that separates expansion from contraction for the 30th consecutive month
Despite the decline, the December figure marked 30 months of the index remaining above 50. A survey print above 50 indicates manufacturing expansion, and below that, contraction
The survey also notes that there was a substantial increase in the overall levels of new work received by Indian goods producers in November
According to the survey, growth eased in October due to competitive pressures despite an increase in new orders
The hiring activity and business confidence slipped to a five-month low in October, said S&P Global
The fall in PMI was primarily attributed to a softening in the number of new orders
'Sharp expansion' in international sales show companies' focus on international business, says survey
This marked a sustained expansion, with 26 months above the 50-mark separating growth from contraction, the longest stretch since March 2020 when pandemic-induced lockdowns were imposed
Manufacturers' output has increased continuously on a monthly basis since July 2021
Combined with manufacturing, output prices across the private sector increased at the sharpest pace in over a decade
Closing Bell on July 3, 2023: The S&P BSE Sensex settled at a fresh closing high of 65,205, soaring 486 points. The broader Nifty50, meanwhile, zoomed 141 points to 19,330
'Client interest' continues to support industry and helping growth of output and employment, it says