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India’s expansion more impressive than China’s, says HSBC study

India’s expansion more impressive than China’s, says HSBC study
Economic growth in emerging market economies slowed in the July-September quarter on poor performance by the manufacturing sector, but India expanded more than China, an HSBC survey said.

The HSBC Emerging Markets Index (EMI) slipped to 52.1 in the third quarter this year, from 53.2 in the April-June period.

A relatively better performance from the services sector was offset by the poor performance of the manufacturing sector, as global demand softened.

However, among the big-four emerging markets, expansion in India and Russia were better than Brazil and China, HSBC said.

Although the HSBC EMI, which is based on PMI (Purchasing Managers' Index) surveys conducted across the emerging markets, stayed above the 50-mark that differentiates growth from slowdown, HSBC noted that the global economic condition is posing strong headwinds for them.

    
S&P DOWNGRADE WARNING PULLS SENSEX DOWN 162 PTS

In knee-jerk reaction to S&P’s rating downgrade threat, the Sensex on Wednesday nosedived by 162 points to close at 18,631.10 on across-the-board selling, particularly in power, banks and PSU shares. Ratings major Standard & Poor’s downgrade warning of ‘at least a one-in-three likelihood’ of a downgrade of India’s sovereign rating within the next 24 months comes a day after IMF slashed the country’s growth forecasts for 2012 to 4.9 per cent, dampening the fragile sentiment further.

After resuming over 100 points lower, the BSE benchmark index failed to stage a recovery amid fresh concerns over the sluggish global economic growth and Eurozone debt crisis. Rupee also wilted under pressure and fell below 53-mark against the US dollar due to FII outflows, traders said. ‘The S&P rating downgrade is speculative and probably a pressure tactic for more reforms. In any case, downgrades are not taken well,’ said Kishor P Ostwal, CMD, CNI Research Ltd. With 27 stocks of the 30-share Sensex ending lower, the Sensex closed near day’s lows at 18,631.10, down 162.26 points or 0.86 per cent. Likewise, NSE Nifty fell below 5,700 level by losing 52.45 points, or 0.92 per cent, to 5,652.15.
PTI

PTI

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