India’s composite PMI at six-month low, reflected in market fall
The Sensex has fallen 4% in the past six months, closely following the trend in the composite PMI
The HSBC India Composite Purchasing Managers’ Index (PMI) that gauges private sector activity fell to a six-month low of 52.5 in April as demand remained soft, indicating that expectations from the change of guard at the Centre are waning.
The composite index includes both manufacturing and services activity. Even the markets are mirroring the weak demand trends, as the Sensex has fallen 4% in the past six months, closely following the trend in the composite PMI.
That indicates the market is now closely following economic fundamentals. Earnings growth so far has failed to materialize as activity on the ground remains subdued.
“Accompanying the subdued outlook in the opening month of the fiscal year was a return to job shedding as companies maintained a cost-cautious approach," said Pollyanna De Lima, economist at HSBC Markit.
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