Morning Alert.. *Manufacturing PMI in March rises to 16-yr hig | Equity99

Morning Alert..
*Manufacturing PMI in March rises to 16-yr high, employment improves*
India’s manufacturing sector ended 2023-24 on a “stellar” note, with the headline Purchasing Managers Index (PMI) soaring to a 16-year high of 59.1 in March, up from 56.9 in February, according to a survey released by HSBC on Tuesday. A PMI above 50 represents expansion in the manufacturing sector, while a reading under 50 represents contraction. The survey reveals that the manufacturing sector gained momentum in March, with the strongest increases in output and new orders since October 2020. This was accompanied by the second-sharpest upturn in input inventories in the survey’s history in connection with India. In a positive sign for the jobs market, employment picked up. “Employment returned to positive territory and firms scaled up buying levels. There was a mild pick-up in cost pressures during March, but customer retention remained a priority for goods producers who raised their charges to the lowest extent in over a year,” the survey stated. At 59.1, the March manufacturing PMI is slightly lower than the flash estimate for the month at 59.2, released on March 21. The March figure marks the manufacturing output rising for 33 months in a row and to the sharpest since October 2020.

*Customers shy away from market as gold price nears Rs 70,000 milestone*
Even as the price of pure gold nears Rs 70,000 per 10 gram, customers have already disappeared from the market. In just a single month, the price in Mumbai’s Zaveri Bazaar has risen by nearly 10 per cent, trading at around Rs 68,500 per 10 gram. The Mumbai spot market has slipped into a heavy discount of $15–20 per ounce, or Rs 400–550 per 10 gram, since prices have risen sharply in a month. Even gold imports, which were around 100 tonnes in February, fell sharply in March. The industry estimates that only 25 tonnes were imported. Jewellers are eyeing marriage demand and Akshaya Tritiya falling in the first week of May. They are said to be preparing to meet demand in case gold price falls, but jewellery fabrication has been affected. The movement of gold is also affected following higher vigilance during the election code of conduct. Bhargava Vaidya, a bullion industry consultant, said that “marriage demand in India has been constant or maybe slightly up in value terms. But with rising prices, in terms of quantity, demand has fallen. At the current price level, the demand trend will continue”. The gold price was Rs 28,430 per 10 gram a decade ago, up 141 per cent, giving a 9.2 per cent compound annual return. This high return is gradually transforming market demand.

*Global market action*
Dow Jones – Down by 0.09% or 37.19 points
FTSE – Down by 0.22% or 17.53 points
CAC – Down by 0.92% or 75.76 points
DAX – Down by 1.13% or 209.36 points
Gift Nifty – Down by 0.67% or 151.50 points

*FII/DII activities*
FII – Sold 1622.69 Cr worth of shares
DII – Bought 1952.72 Cr worth of shares.

*Stocks with high delivery Percentage*
Timken India Ltd – 88.8%
Kaynes Technologies India Ltd – 88.3%
CE Info Systems Ltd – 87.9%
P&G Health Ltd – 86.1%
Century Plyboards (India) Ltd – 85.9%

*Primary market activities*
IPO opening today
Bharti Hexacom Ltd (Main board) – Issue size 4275Cr

Listing today
Aspire & Innovative Advertising Ltd (NSE SME) – Subscribed 15.17x

*Commodities updates*
Gold – Rs 71020/10gm, Silver – Rs 77100/kg, Brcrude – Rs 7077/barrel, Copper – Rs 769.7/kg.

*Corporate News*
UltraTech Cement to invest Rs 32,400 crore in the next three years.

Voda Idea holds EGM to seek shareholders' approval to raise Rs 20,000 crore.

From United Spirits to Zomato, multiple companies get tax demand notices.