The Nikkei India Services Purchasing Managers' Index, which tracks services sector companies on a monthly basis, stood at 52 in September, down from August's 43-month high of 54.7, pointing to a slower and moderate rate of expansion.
FY22 will be the year to rebuild with the IMF projecting output growth at 11.5 per cent, economic survey at 11.0 per cent and the RBI's Monetary Policy Committee at 10.5 per cent.
That prompted manufacturers to add jobs for the first time since June.
RBI policy, macro data, company earnings to decide market course this week: Experts
Finance Minister Nirmala Sitharaman on Thursday announced a new job creation scheme by giving subsidy to those establishments that make new hires. The subsidy would be to cover for retirement fund contributions by employees as well as employers for two years, she said. Employees contribution (12 per cent of wages) and employer's contribution (12 per cent of wages) totalling 24 per cent of wages would be given to establishments for two years, she said. Under the Aatmanirbhar Bharat Rozgar Yojana, every Employees' Provident Fund Organisation (EPFO)-registered establishment taking new employees would get this subsidy.
Markets closed the day in green on favourable domestic factors,
ONGC was the top performer while private banking major ICICI Bank extended gains
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.
The GST rate for the sector has not yet been finalised by the government.
'The question is, how soon we can expect to re-attain the pre-lockdown levels of output and income.'
The 30-share S&P BSE Sensex ended up 130 points at 25,400 and the Nifty50 rose 46 points to close at 7,759.
'The real lifting of the economy will happen only if this momentum sustains in the coming months.'
The improvement in business conditions promoted job creation, while confidence towards the year-ahead outlook for activity was at a four-month high during March.
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.
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.
It is the rupee's biggest single-day gain this year.
Banking stocks felt the heat due to worries that the lending rate cuts will hit their bottom line
The department for promotion of industry and internal trade has asked the telecom department and State-owned BSNL to put on hold the tender for setting up 4G network, valued at Rs 9,000 crore, after allegations emerged that the tender favoured foreign companies. The tender was floated by BSNL in March under the new management for setting up the 4G network.
Services growth at 5-month low in Nov as confidence slumps.
The Chinese economy is not collapsing, it is shifting to different growth drivers which the old metrics used to judge China do not pick up.
Risk sentiment is likely to be favourable if oil prices stay benign, global growth sentiment remains robust and the dollar index does not break out, says B Prasanna.
A reading below 50 means contraction in the sector.
Standard Chartered on Friday lowered India's growth forecast for the current financial year to 4.7 per cent from earlier 5.5 per cent, citing "upside risks" to inflation and fiscal deficit.
UN economists announced a likely USD 50 billion drop in the worldwide manufacturing exports in February alone as the extent of the damage to the global economy caused by the novel coronavirus (COVID-19) moved further into focus. Citing the China Manufacturing Purchasing Manager's Index (PMI), Pamela Coke-Hamilton, who heads UNCTAD's Division on International Trade and Commodities, said that it had fallen to 37.5 -- a drop of about 20 points -- the lowest reading since 2004. "This also correlates directly to exports and also implies a two per cent drop in overall exports," she said, with a resulting "ripple effect" worldwide "to the tune of a USD 50 billion fall in exports."
A reading above 50 represents expansion while one below means contraction.
The NSE Nifty, however, ended a shade higher by 6.65 points or 0.06 per cent at 10,442.20
A reading below 50 means contraction in the sector.
The higher rate cut by RBI is positive for rate-sensitive sectors in the medium to long term.
Financials emerged as the top gainers while auto shares rallied on robust September sales
The 30-share Sensex closed down 115 points at 28,444 and the 50-share Nifty ended down 31 points at 8,524.
In the offshore non-deliverable forwards, the one-month contract was at 62.26/36, while the three-month was at 62.83/93.
Bank of America Merrill Lynch believes this would ease pressures on CAD as $10 a bbl fall in oil price reduces CAD by $8 billion or 0.4 per cent of GDP.
Growth in the eight core sectors jumped to 8.5% in April, due to a sharp pick-up in refinery products and a commensurate rise in electricity generation.
One of India's main export destinations, the euro zone, is struggling to revive its economy and battling disinflation.
Large investors track high-frequency data that is immediately available today. That data has been bullish, points out Debashis Basu.
Observing that the economic recovery was not yet fully entrenched, the RBI Governor said recovery is likely to be gradual.
Indian Prime Minister Narendra Modi who envisioned Make In India last September was at his eloquent best as he made a fervent plea to global businesses to come Make In India.
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Likely to set the ball rolling for Rs 1.72-lakh-cr projects today
The index went below the crucial 50 mark.
Traders are waiting for the earnings season to kick off.
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