Time: 2024-08-02
Manufacturing activity in India eased to 58.1 in July from 58.3 a month back , as new orders and output growth slowed marginally , according to a private survey released on August 1 . The headline manufacturing PMI showed a marginal slowdown in the pace of expansion in July , but with most components remaining at robust levels . The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index remained higher than the long - term average for yet another month , as the economy kept humming at the start of the second quarter . Exports remained a bright spot with international sales expanding at the second - strongest rate in over 13 years . Favourable demand conditions helped keep employment levels high but also pushed input costs higher with inflation galloping.
The Indian Rupee ( INR ) lost ground in Thursday 's early European session as the Indian HSBC Manufacturing PMI came in weaker than expected , declining to 58.1 in July compared to 58.3 prior . The decline in the manufacturing sector growth contributed to the steepest increase in selling prices since October 2013 . The INR struggled to gain ground despite continuous growth in the manufacturing sector . Factors like significant outflows from Indian equities , persistent USD demand from importers , and fluctuations in the Chinese Yuan might cap the INR 's upside in the near term . The dovish stance of Fed Chair Jerome Powell after the policy meeting could undermine the Greenback broadly.
India 's Ratings and Research ( Ind - Ra ) raised its economic growth projection for the current fiscal year to 7.5 % , up from its earlier estimate of 7.1 % . Ind - Ra 's revised growth projection is higher than most other estimates , including those from the Reserve Bank of India ( 7.2 % ) , the Economic Survey ( 6.5 to 7 % ) , and the International Monetary Fund ( 7 % ) . Experts anticipate a pickup in capex utilization in the coming months , although the high policy rates are likely to have a bearing on the economy in the second quarter . Expectations of a rate cut are likely to rise , as the Federal Reserve chair Jerome Powell hinted that a September rate cut was on the table.
Technical analysis shows that the longer - term trend of the USD / INR pair remains bullish , with the price holding around the key 100 - day Exponential Moving Average ( EMA ) and being underpinned by the uptrend line since June 3 on the daily chart . The immediate resistance level is at the all - time high of 83.85 , while the initial support level is seen at the uptrend line around 83.70 . The outcome of reports like the US ISM Manufacturing PMI and weekly Initial Jobless Claims may offer more hints about the interest rate path in September , affecting market trends and the Indian Rupee 's performance.
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