HSBC's purchasing managers' index was released on Tuesday.
Observing that the economic recovery was not yet fully entrenched, the RBI Governor said recovery is likely to be gradual.
"Purchasing managers' index for April has risen above the 50 mark to 53.3 suggesting industrial output expanded in sequential terms in April. Therefore, we continue to expect a recovery in manufacturing production in the months ahead," DBS Bank said. PMI gives an indication of the country's manufacturing activity and its future outlook.
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- fell to 49.6, down from 52.3 in November, coming below the crucial 50 threshold which separates contraction from expansion.
The trade impact of the coronavirus epidemic for India is estimated to be about 348 million dollars (approximately Rs 25 billion) and the country figures among the top 15 economies most affected as slowdown of manufacturing in China disrupts world trade, according to a UN report. Estimates published by United Nations Conference on Trade and Development on Wednesday said that the slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a 50 billion dollar decrease in exports across global value chains.
Little indication of growth surge in either industry or services till well into FY14.
n the broader market, both the BSE Midcap and Smallcap indices, were up 1.2% and 0.7% each.
Stating that COVID-19 has not yet been contained in India, the rating agency in a statement said the government stimulus package is low relative to countries with similar economic impacts from the pandemic. "The COVID-19 outbreak in India and two months of lockdown -- longer in some areas -- have led to a sudden stop in the economy. That means growth will contract sharply this fiscal year (April 2020 to March 2021)," it said. "Economic activity will face ongoing disruption over the next year as the country transitions to a post-COVID-19 world."
Indications of a revival in domestic demand emerged on Monday, with the monthly ABN Amro Purchasing Managers' Index crossing 50 for the first time since October 2008.
The market breadth in BSE remains positive with 1,554 shares advancing and 1,196 shares declining.
The finance ministry on Tuesday cited "green shoots" of recovery in agriculture, manufacturing and services sectors, and said the prompt policy measures taken by the government and RBI have helped reinvigorate the economy with minimal damage. Stating that the agricultural sector remains the foundation of the Indian economy, the ministry said that a normal monsoon, as has been forecast, should support the rebooting of economy.
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Likely to set the ball rolling for Rs 1.72-lakh-cr projects today
The S&P BSE Sensex ended 46 points lower at 24,824 and Nifty50 settled at 7,555, down by 8 points after hitting intra-day high of 7,600.45.
Investor sentiment got a boost following remarks from the Russian President Putin that allayed fears of an imminent military conflict in Ukraine
The PMI has risen sharply from 52.9 in July, the lowest reading in the 29-month history of the survey.
That prompted manufacturers to add jobs for the first time since June.
Market sentiment suffered a jolt after other Asian markets closed with widespread losses and European markets dropped in early trade
Although we all have tastebuds that are dying to sample all the yummy food around us, we must remember that anything in excess is bad.
'We expect the Reserve Bank of India to deliver a 25 bps rate cut in April to support growth.'
C Rangarajan, chairman, Prime Minister's Economic Advisory Council tells Business Standard that the measures taken by the government will lead to economic growth of at least 6 per cent in FY14 against a decadal-low growth of 5 per cent in FY13.
The BSE 30-share index after a positive opening stretched to 31,772.41, but could not stay there for long buffeted by the selling pressure. It hit a low of 31,562.25 before settling lower by 79.68 points, or 0.25 per cent, at 31,592.03.
The survey showed firms passed on a greater cost burden to consumers. Prices charged rose at their fastest pace since October.
The benchmark BSE Sensex ended down 2.23 per cent. The Bank Nifty fell 3.59 per cent.
A reading above 50 represents expansion while one below means contraction.
Services growth at 5-month low in Nov as confidence slumps.
Manufacturing growth in India lost momentum in February.
'The large scale and widespread shrinking of the labour force in November, the peaking of unemployment in October and the fall in lead indicators in October and November point towards a worsening of the slowdown of the Indian economy in the third quarter of 2019-20,' says Mahesh Vyas.
Investors have been hoping for a cyclical recovery.
One of India's main export destinations, the euro zone, is struggling to revive its economy and battling disinflation.
Regarding employment, the manufacturing sector hiring remained broadly unchanged.
The Nikkei Markit India Manufacturing Purchasing Managers' Index increased to 50.7 in February
Overseas education consultant NNS Chandra offers advice.
Capital goods shares continued to trade firm in late noon despite weak market trend on the back of encouraging core sector growth in February.
Investors went looking for bargain in banking, oil and gas and auto stocks.
Supported by greater demand from both domestic and external markets, total new business rose at the fastest pace since March
Indian economy grew 7.9% in March quarter and recorded a five-year high growth rate of 7.6% for the 2015-16 fiscal
China had been trying hard to enter the Indian market, without opening its own to Indian products. There is an economic crisis in India-China relations that the Chennai Connect barely scratched the surface, points out Srikanth Kondapalli.
There is a strong case for 25 basis points cut in interest rates.
RBI's fifth bi-monthly monetary policy meet due tomorrow also kept the investors on their toes.
Heavy dollar selling by banks and exporters alongside debt-related inflows largely supported the rupee
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