The News International Team
11:50 am HSBC PMI: In what could be a big sentiment boost, data showed that HSBC India Purchasing Managers’ Index (PMI) climbed to a two-year high of 54.5 in December, up from 53.3 in the prior month. The index is a composite indicator designed to give an accurate overview of manufacturing operating conditions. Accelerated growth of the manufacturing sector was reflected by faster expansions in output, new business and foreign orders, noted the HSBC India release issed on Friday. Latest data also painted a brighter picture in terms of prices, as inflationary pressures eased during the month. Consumer Goods emerged as the best performing sector.
Commenting on the India Manufacturing PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said, “Manufacturing activity momentum accelerated to a two-year high in December, led by a healthy increase in new orders from both at home and from abroad.”
11:30 am How will crude price impact consumer cos? As crude oil prices fall 47 percent in rupee terms over the past five months, CLSA feels consumer companies will benefit from it but growth pick may still take some time.
“While a part of the savings would be ploughed back in the form of higher adverstising and promotion (A&P), there would still be a positive impact on margins. The demand environment continues to remain weak, though, most companies expect a gradual pick-up in FY16,” the firm says in a report.
It also feels that decline in oil prices may also help in lowering the freight costs for the industry. It sees Asian Paints and HUL as the key beneficiaries where oil derivatives form almost 40-45 percent of the input base.
CLSA warns that as the consumers tread through a challenging environment benign input prices also imply lesser contribution from price hike which may further impact the overall growth rate, negatively.
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The market is still maintaining its uptrend with major boost from banks and auto stocks. The Sensex is up 318.65 points or 1.2 percent at 27826.19 and the Nifty is up 95.70 points or 1.2 percent 8379.70. About 1657 shares have advanced, 621 shares declined, and 863 shares are unchanged.
HDFC is up 3 percent while BHEL, Axis Bank, ICICI Bank and Tata Motors are up 2 percent each. Among the losers are Hero and Bajaj.
From other asset classes bonds are lower on concerns of persistent fiscal concerns and fear of lower oil prices not translating into lower inflation. Rupee is little changed
PSU banks are in focus as the Gyan Sangam kicks off today. Issues on the agenda include consolidation, inclusion, priority sector lending and hr amongst others.
Globally, Hong Kong and Indonesian markets lead gains in light post holiday trade. Brent trades above USD 57 per barrel.