With the resurgence of COVID-19 cases posing risks to economic recovery, leading brokerages have downgraded India s GDP growth projections for the current fiscal year to as low as 10 per cent on local lockdowns threatening fragile recovery. While Nomura has downgraded projections of economic growth for the fiscal year ending March 2022 to 12.6 per cent from 13.5 per cent earlier, JP Morgan now projects GDP growth at 11 per cent from 13 per cent earlier. UBS sees 10 per cent GDP growth, down from 11.5 per cent earlier and Citi has downgraded growth to 12 per cent. India s GDP growth had been on the decline even before the pandemic struck earlier last year. From a growth rate of 8.3 per cent in FY 17, the GDP expansion had dipped to 6.8 per cent and 6.5 per cent in the following two years and to 4 per cent in 2019-20.
India s manufacturing sector grew at its weakest pace in seven months in March on renewed lockdowns to curtail a resurgence in COVID-19 cases. The Nikkei Manufacturing Purchasing Managers Index or PMI, compiled by IHS Markit, dropped to a seven-month low of 55.4 last month from February s 57.5, but remained above the 50-level separating growth from contraction for an eighth straight month.
The foreign orders grew at a faster pace in March, but a sub-index tracking overall demand declined to its lowest since August 2020. Output also grew at its weakest pace in seven months.
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SGX Nifty:
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 98 points at the opening bell.
Global markets:
Overseas, Asian stocks are trading higher on Thursday as US President Joe Biden announced a multi-trillion-dollar infrastructure investment plan.
A private survey released Thursday showed slowing growth of Chinese factory activity in March. The Caixin/Markit manufacturing Purchasing Managers Index (PMI) for March came in at 50.6, compared to February s reading of 50.9.
Japan s factory activity expanded at a faster pace in March. The final au Jibun Bank Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.7 in March from the previous month s 51.4 reading.
The benchmark indices continued marching ahead in the afternoon trade. The Nifty index was hovering above 15,100 mark.
At 13:20 IST, the barometer index, the S&P BSE Sensex, jumped 728.02 points or 1.45% at 51,024.91. The Nifty 50 index gained 218.15 points or 1.46% at 15,137.25.
ICICI Bank (up 2.59%), Infosys (up 2.32%) and HDFC (up 2.12%) boosted the indices.
The broader market rallied. The S&P BSE Mid-Cap index added 1.18%. The S&P BSE Small-Cap index rose 1.60%.
Buyers outnumbered sellers. On the BSE, 1,847 shares rose and 1,029 shares fell. A total of 177 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 2,223.16 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 854.04 crore in the Indian equity market on 2 March 2021, provisional data showed.
India s services Purchasing Managers Index rose to 55.3 in February from 52.8 in January, survey results from IHS Markit showed on Wednesday. New work intake increased for the fifth month in a row in February. New export orders declined for the twelfth straight month, albeit at the weakest rate since March last year. Employment decreased further in February. Backlogs of work was solid and quickened from January.
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