Connect with us

BUSINESS

India service sector sees a sharp decline in June

Published

on

India service sector sees a shaIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in Junerp decline in June

India service sector sees a shaIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in JuneIndia service sector sees a sharp decline in Junerp decline in June

New Delhi: India’s services sector activities contracted in June due to the intensification of the Covid-19 crisis and restrictive demand for containment measures, a monthly survey said on Monday. The seasonally adjusted India Services Business Activity Index fell from 46.4 in May to 41.2 in June, as new work and output contracted at the fastest rates since July 2020, prompting companies to reduce employment again.

Weak demand conditions resulted in a second consecutive monthly decline in new business received by service firms. The survey said that the pace of contraction was sharp and the fastest since July 2020.

In Purchasing Managers Index (PMI) parlance, a print above 50 indicates expansion, while a score below 50 indicates contraction.

“Given the current COVID-19 situation in India, it was expected that the services sector would be affected. June’s PMI data showed a sharp decline in new business, output and employment, sharper but much softer than those recorded earlier in the lockdown,” said Pollyanna de Lima, associate director of economics at IHS Markit.

International demand for Indian services declined further in June with a decline in new export orders for the 16th consecutive month.

Meanwhile, overall trading sentiment was down for the third month in a row in June, hitting its lowest level since August last. The Covid-19 pandemic was the main factor seen as a threat to outlook among survey participants.

“Uncertainty about the path of the pandemic restricted business confidence among service firms, which were generally neutral in their forecasts for production in the coming year. The overall level of sentiment slipped to a 10-month low,” Lima said.

Lima further said that ‘India is expanding its vaccine options and the government has announced ambitious plans to vaccinate the entire adult population by the end of the year, hoping to bring the pandemic under control’ And a lasting economic recovery could begin.

Private sector companies in India reported a second consecutive monthly decline in business activity during June as market conditions remain challenging due to the escalation of the pandemic.

The Composite PMI Output Index, which measures combined services and manufacturing output, fell from 48.1 in May to 43.1 in June, indicating the sharpest decrease since July 2020.

Meanwhile, rising prices of edible oils and protein-rich items pushed retail inflation to a six-month high of 6.3 per cent in May, breaching the Reserve Bank of India’s (RBI) comfort level and thereby reducing interest rates. . A tough proposition in the near term.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

BUSINESS

Sensex climbs 134 points; Nifty tops 15,850

Published

on

By

Sensex climbs 134 points

Sensex climbs 134 points

Mumbai: Equity benchmark Sensex jumped 134 points on Wednesday, tracking gains mainly in IT stocks, despite weak global cues.

The 30-share BSE index ended 134.32 points or 0.25 percent higher at 52,904.05, while the broader NSE Nifty ended 41.60 points or 0.26 percent higher at 15,853.95.

Tech Mahindra was the top gainer in the Sensex pack, rising over 2 per cent, followed by HCL Tech, Infosys, L&T, Tata Steel, and ITC.

On the other hand, Maruti, HUL, Nestle India, and Dr. Reddy were among the laggards.

Hariharan, Head – S Hariharan said, “The decline in institutional participation rates has contributed to a 20 per cent decline in daily market volume – however, market breadth and retail participation in the futures segment remains strong and the ongoing broadening The market rally remains strong.” Sales Trading, Emkay Global Financial Services.

Further, he added that strong investor interest in new issuances such as Zomato, Tattva Chintan and Swachh Vigyan has also contributed to some extent in reducing inflows into the second segment, and a clogged pipeline of issues in the coming few months. expected to play the role of a similar role.

“July has been the seasonally least volatile month for the headline index in the past 15 years, and we expect similar weak index moves this year. The current results season can be expected to see strong numbers from IT, chemicals, and real estate businesses, while numbers for auto and financial names will be relatively weak,” he said.

Elsewhere in Asia, shares ended with losses in Shanghai, Seoul, Hong Kong and Tokyo.

European stock exchanges were also trading in the red in mid-session deals.

Meanwhile, international oil benchmark Brent crude fell 0.82 per cent to $75.86 per barrel.

Continue Reading

BUSINESS

India’s media, entertainment industry to reach Rs 4 lakh crore by 2025, says report

Published

on

By

ndia's media, entertainment industry to reach Rs 4 lakh crore by 2025

ndia's media, entertainment industry to reach Rs 4 lakh crore by 2025

Mumbai: The country’s media and entertainment (ME) sector will be the fastest growing globally in terms of both consumer and advertising spend. Consultancy firm PwC on Monday said the media and entertainment sector will become a Rs 4 lakh crore-plus industry by 2025. The sector is expected to witness a Compound Annual Growth Rate (CAGR) of 10.75 per cent over the next four years. PwC said in a report that it is to become a Rs 4,12,656 crore industry by 2025.

“Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience,” said Rajeev Basu, Partner, Consultancy. He said that India will be the fastest growing entertainment and media market globally in terms of consumer and advertising revenue.

Technological advances and the deepening of internet penetration will continue to influence the way Indians consume content. There will be a greater appetite for local content and new business models will also develop, the report said.

TV advertisements increased to Rs 35,015 crore in 2020 despite the pandemic. It will expand at the rate of 7.6 per cent to contribute over Rs 50,000 crore in total. Advertising on the Internet is expected to grow at a rapid rate of 18.8 per cent per annum during 2020-2025 to exceed Rs 30,000 crore by the end of the cycle, the report said.

It also said that the revenue from mobile internet advertising in India in 2020 was Rs 7,331 crore. This will increase to Rs 22,350 crore by 2025, showing a growth of 25.4 per cent.

However, the newspaper and consumer magazine industry is projected to grow at a very low clip of 1.82 per cent to Rs 26.299 crore by 2025. Print advertising revenue declined by 12 percent and print circulation revenue declined by 4 percent in 2020. pandemic in 2020, the report further stated.

It added that the box-office revenue is expected to grow at a CAGR of 39.3 per cent to Rs 13,857 crore by the end of 2025. PwC said that the cinema industry, which was hit by the pandemic, will return to pre-pandemic levels by mid-2023.

India’s total music, radio and podcast market revenue declined to Rs 4,626 crore in 2020 as the pandemic took away around Rs 522 crore from the country’s live music sector. However, overall the music, radio and podcast industry will grow by 19.1 per cent per annum to reach Rs 11.026 crore in 2025.

Video game and e-sports revenue reached Rs 11,250 crore in 2020 and is set to reach Rs 24,213 crore in 2025 at an annual growth rate of 16.5 percent.

Continue Reading

BUSINESS

States will borrow close to Rs 2 lakh crore to raise funds for Covid relief

Published

on

By

States will borrow close to Rs 2 lakh crore to raise funds

States will borrow close to Rs 2 lakh crore to raise funds

Mumbai: Considering the need to spend more towards COVID relief measures coupled with the pandemic, states have planned to borrow heavily for the second quarter of the current financial year.

Overall, the states and union territories are expected to borrow Rs 1,92,091 crore from the markets during the July-September quarter. The Reserve Bank of India in consultation with the State Governments/Union Territories (UTs) has prepared the lending calendar for the quarter where bonds will be issued to raise funds on a weekly basis.

As per the states’ lending calendar, Uttar Pradesh and Maharashtra, the country’s two largest states with high population, will have maximum borrowings of Rs 25,000 crore and Rs 22,500 crore respectively during the quarter. Bihar will also borrow over Rs 12,000 crore during the quarter while West Bengal will borrow around Rs 18,000 crore

The lending program, which started on July 6, will continue till September 28.

The actual amount of borrowing and the details of the participating States/UTs will be communicated through a press release two/three days before the actual auction day and will depend on the requirement of the State Governments/UTs. Under Article 293(3) of the Constitution of India and market conditions, RBI said in a statement.

The RBI will endeavor to conduct the auction in a non-disruptive manner and distribute the borrowings equitably throughout the quarter, taking into account the market conditions and other relevant factors. RBI reserves the right to revise the dates and auction amount in consultation with the State Governments/Union Territories, the statement said.

Continue Reading

Trending