First week of 2014 ends on a lower note - Microsec

The initial week of the CY14 ended on a lower note with the high fiscal deficit data and low PMI data coupled with depreciating INR against USD.

On Domestic front The Indian manufacturing activities improved for the second successive month in December 2013, as both output and new orders increased. Down slightly from 51.3 in November to 50.7 in December, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) signaled a second consecutive monthly improvement in business conditions.

India's Fiscal Deficit in the April-November FY2013-14 period reached 94 percent of the targeted budgetary estimate of INR5.42 lakh crore.

India's Eight Core Sectors growth came in at 1.7 percent YoY in November 2013 against 5.8 percent YoY in the same period a year ago. The output slowed down mostly due to poor showing by natural gas, fertilizers and petroleum refinery sectors. However, the data is better than the previous month, when Core Sectors growth had contracted by 0.6 percent YoY.

On Global front Growth in China's manufacturing slowed slightly in December as export orders and output weakened. China's official Manufacturing PMI slowed to 51.0 in December 2013 from November's 51.4. The 50-point mark separates an expansion in activity from a contraction.

The U.S. Initial Jobless Claims declined by 2,000 to a seasonally adjusted 339,000 for the week ending December 28, 2013.

Euro Zone manufacturing activity rose to a 31-month high in December 2013. A final reading of Manufacturing PMI rose to 52.7 in December, up from the 51.6 reading in November.

Source : Equity Bulls

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