November 25, 2024
New Delhi, India
c Today
Rupee (INR) extended its rally on Monday, supported by the weakening US Dollar (USD) and anticipated inflows of $2.5 billion from MSCI’s equity index rebalancing. However, higher crude oil prices and persistent foreign portfolio outflows could limit further gains.
PMI Data Highlights
- HSBC Flash India Composite Output Index: Increased to 59.5 in November (from 59.1 in October).
- Manufacturing PMI: Slightly eased to 57.3 from 57.5 in October.
- Services PMI: Improved to 59.2, up from 58.5 in the previous month.
Commentary: “While services growth accelerated, manufacturing outperformed expectations despite rising price pressures,” noted Pranjul Bhandari, Chief India Economist, HSBC.
Upcoming US Data
Key US economic reports to watch:
- Monday: Chicago Fed National Activity Index, Dallas Fed Manufacturing Business Index.
- Later this Week: US Core PCE Price Index and Q3 GDP Annualized figures.
Global PMI Trends
- US S&P Global Composite PMI: Rose to 55.3 in November (from 54.1 in October).
- US Manufacturing PMI: Marginal improvement to 48.8 from 48.5.
- US Services PMI: Climbed to 57.0, surpassing estimates.
Market Outlook
While the INR is buoyed by MSCI inflows, challenges such as rising crude prices and USD strength could restrain its upside. Traders will closely monitor US economic data and its implications for the global currency market.
Latest Q2 Results
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