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Moneycontrol Pro Panorama | Markets hit the sweet spot

In today’s edition of Moneycontrol Pro Panorama: SCO meet to advance India’s political agenda, should investors sell equities, decoding Fed’s new financial conditions index, social media hijacking democracy, and more

July 03, 2023 / 16:16 IST
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The S&P Global India Manufacturing PMI came in at a 57.8 in June, continuing the healthy trend seen in earlier months.

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The Street already had its ears to the ground in June, listening to macro murmurings, as evidenced by the uptrend in equities. The S&P Global India Manufacturing PMI came in at a healthy 57.8 in June, continuing the healthy trend seen in earlier months. While the absolute level may be a bit lower than in May, this analysis in today’s edition explains why it’s still very healthy. Moreover, producers have been able to hike output prices despite input inflation being contained. That’s the pricing power investors like their portfolio's companies to possess.

The icing on the cake is that India’s manufacturing sector is the best in Asia, aided by the strength of its domestic economy driving its outperformance, compared to the export-oriented East Asian economies. China’s PMI data slid in June relative to May and at 50.5 is barely inches away from slipping into contractionary territory. While its weakness is good news for commodity importers such as India, it’s also not good news for producers of metals such as zinc, we point out in today’s Chart of the Day.