News & Impact on India

Global cues remain mixed as US manufacturing PMI slipped to 48.2 in November—a four-month low—while prices stayed elevated and employment softened, signalling weak demand but higher input costs. This may temporarily weigh on India’s textile and engineering exports while increasing the likelihood of a Fed rate cut, which supports foreign inflows into India. US consumers, however, remained strong during Thanksgiving and Black Friday with record spending, though higher selling prices indicate sticky inflation that may keep the USD firm and add INR volatility. In Asia, the Bank of Japan signalled a possible December rate hike, likely strengthening the yen and triggering short-term portfolio rebalancing across emerging markets, including India; however, a stronger yen could aid Indian exporters in auto ancillaries and engineering. Domestically, India’s CAD moderated sharply to 1.3% of GDP in Q2, improving external stability and reducing pressure on RBI intervention, while GST collections at ₹1.52 trillion showed steady consumption and fiscal resilience. IIP growth eased to 0.4% in October due to fewer working days and weak electricity output, but the softness appears temporary and may support a dovish RBI tone. Meanwhile, FDI inflows rose 18% to $35.18 bn in Apr–Sep, reinforcing India’s strength as a long-term investment destination across manufacturing, renewables and digital infrastructure—further supporting rupee stability and equity flows. Related Stocks: L&T (benefits from strong FDI and infra capex momentum) Motherson (gains from yen appreciation and auto-export competitiveness)