Markets zoom on signs of healthy recovery

The Big Picture

• India’s Manufacturing PMI, which measures the manufacturing sector’s health, surged to 55.3 in July 2021. A reading of less than 50 indicates a contraction. The latest reading pointed to the strongest growth in the sector since April, as output, new orders, exports, the number of purchases and input stocks all returned to expansion territory.
• The India Services PMI measures the performance of the services sector and is based on data compiled from monthly surveys sent to 350 companies in the service sector. In July, the Services PMI increased to 45.4 from 41.2 in the previous month, but far above market expectations.
• India’s trade deficit (which measures the country’s imports minus exports) stood at $11.23 billion in July 2021.
• The Reserve Bank of India kept its benchmark repo rate at 4% during its August meeting, as widely expected, saying it was maintaining an accommodative monetary policy stance as long as necessary to support the economic recovery and to help mitigate the negative impact of COVID-19. Moreover, the reverse repo rate was unchanged at 3.35%.
• Foreign Exchange Reserves in India stood at $620.58 billion on July 30th from $611.15 billion in the previous week.

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Inside smallcase

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That’s all for this week. Take care, and happy investing! 🙂