Stock markets shed off some gains

Markets Update

• Benchmark indices closed the week in red as Nifty50 closed down 6.2% at 9251.5 and Sensex closed down 6.15% at 31642.7
• In the broader market, Nifty500 also closed down 5.75% at 7,552.0
• After pulling out ₹68,856.3 crore in March and April, Foreign Portfolio Investors (FPIs) have pumped in ₹18,637.20 crore so far during May 2020

Other Updates

• India Manufacturing PMI tumbled to 27.4 in April 2020 from 51.8 in the previous month and far below market consensus of 42. The latest reading pointed to the sharpest deterioration in business conditions across the sector since data collection began over 15 years ago
• Likewise, India Services PMI tumbled to 5.4 (no, that’s not a typo!) in April 2020 from 49.3 in the previous month, far below market expectations of 40.0

Matter of Fact

The India Manufacturing PMI (Purchasing Managers’ Index) measures the performance of the manufacturing sector and is derived from a survey of 500 manufacturing companies. Likewise, the India Services PMI is based on data compiled from monthly replies to questionnaires sent to around 350 private service sector companies. 

A PMI above 50 represents an expansion when compared with the previous month, a PMI reading under 50 represents a contraction, and a reading at 50 indicates no change.