The Indian stock market ended the week higher with benchmark indices ending the week at all-time highs. A number of reasons led to this. Macroeconomic data surrounding the health of the manufacturing and services sector showed signs of a healthy recovery.
June quarterly earnings of companies have been as per expectations of the market – which also made investors hopeful. Moreover, positive global cues and an accommodative stance from the RBI has been fuelling market optimism.
Quote of the week
Successful investing is about managing risk, not avoiding it. Click To Tweet
Successful investing is about managing risk, not avoiding it.
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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That’s all for this week. Take care, and happy investing! 🙂