What is the significance of the increase in India’s manufacturing PMI in April?
Based on the latest news, it seems that India’s manufacturing sector is doing well, as indicated by the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) which rose to 57.2 in April from 56.4 in March. This is the highest it has been in four months, and it’s great to see that the PMI has remained above 50, indicating expansion, for 22 consecutive months.
As an investor, this news presents an opportunity to look at the stocks that could potentially perform well in this sector. Some stocks that I am considering include:
- Tata Steel, which has seen a 2.22% increase in stock value.
- Maruti Suzuki India, which has seen a 2.16% increase in stock value.
- Tech Mahindra, which has seen a 2.84% increase in stock value.
It’s important to note that there are still some challenges to be aware of, such as higher operating costs linked to fuel, metals, transportation, and some other raw materials, but overall the rate of inflation has remained below its long-run average despite quickening since March. Additionally, while the output of eight infrastructure industries grew 3.6% in March, it was the most sluggish pace since October.