India s manufacturing PMI at 10-month low in May; heads towards stagnation
At 50.8 in May, down from 55.5 in April, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers Index (PMI) moved closer to the no-change mark of 50.
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Although the health of the Indian manufacturing sector continued to improve in May, the latest results show a significant loss of growth momentum, according to the latest IHS Markit Manufacturing PMI released on Tuesday.
Due to the intensification of the COVID-19 crisis and its detrimental impact on demand, companies observed the slowest rise in new work and output for 10 months. There was also a substantial slowdown in the growth of input purchasing and another round of job shedding. Concerns surrounding the pandemic restricted business confidence towards the year-ahead outlook for production.
The benchmark indices bounced back in positive terrain in afternoon trade, tracking firm global cues. At 13:20 IST, the barometer index, the S&P BSE Sensex, rose 74.95 points or 0.14% at 52,012.39. The Nifty 50 index gained 13.35 points or 0.09% at 15,596.15.
Housing Development Finance Corporation (HDFC) (up 1.18%), Bajaj Finance (up 1.78%) and State Bank of India (SBI) (up 1.74%) boosted the indices.
The broader market traded lower. The S&P BSE Mid-Cap index lost 0.11%. The S&P BSE Small-Cap index fell 0.28%.
Sellers outnumbered buyers. On the BSE, 1,211 shares rose and 1,812 shares fell. A total of 133 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,412.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 179.78 crore in the Indian equity market on 31 May 2021, provisional data showed.
Covid slows India s May manufacturing growth: PMI
By IANS |
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Factory. (File Photo: IANS). Image Source: IANS News
New Delhi, June 1 : India s manufacturing sector growth slowed down considerably in May, as the second wave of Covid-19 impacted demand and order flow.
The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.
Accordingly, the headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers Index (PMI) inched up to 50.8 (index reading) in May same as 55.5 in April.
The latest index reading pointed to a marginal improvement in business conditions that was the weakest in the current ten-month sequence of expansion.