D Street at a New High; All Eyes on RBI

Man­u­fac­tur­ing takes a hit and sales of durables slump, but car cos make record despatches to deal­ers

The Economic Times - - Front Page -

Team ET

Kolkata | New Delhi: Man­u­fac­tur­ing took a hit in July, due largely to the roll­out of GST at the be­gin­ning of the month, plum­met­ing to its low­est in more than eight years. Also, sales of durables slumped, tak­ing the in­dus­try by sur­prise. On the other hand, car sales grew at near-record lev­els. The Mon­e­tary Pol­icy Com- mit­tee will take on board all this and other data ahead of what’s widely ex­pected to re­sult in a de­ci­sion on Wed­nes­day to cut in­ter­est rates, ac­cord­ing to an ET poll.

The Nikkei In­dia Man­u­fac­tur­ing Pur­chas­ing Man­ager’s In­dex (PMI) slowed to 47.9 in July, its low­est since Fe­bru­ary 2009, com­pared with 50.9 in June. A read­ing above 50 in­di­cates ex­pan­sion. New or­ders and out­put fell the steep­est in more than eight years.

“Man­u­fac­tur­ing growth in In­dia came to a halt in July, with the PMI down to its low­est mark in al­most eight-and-a-half years amid wide­spread re­ports that the sec­tor has been ad­versely af­fected by the im­ple­men­ta­tion of GST,” said Pollyanna De Lima, econ­o­mist at IHS Markit and au­thor of the re­port. Set­ting new records for the sec­ond day, the Sen­sex on Tues­day closed at 32,575 and the Nifty at 10,115 as in­vestors wait for the out­come of RBI pol­icy meet amid cor­po­rate earn­ings mo­men­tum.

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