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India’s flash PMI climbs to 54.6 in August as services activity recovers

India’s flash composite PMI rose to 54.6 in August from a four-year low of 54.3 in July, as a rebound in services activity offset the weakest manufacturing growth in five years.

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India’s private sector activity climbed slightly in August, recovering from an over four-year low as services growth staged a rebound.

The HSBC Flash India Composite PMI, compiled by S&P Global, rose to 54.6 in August from 54.3 in July, above a Reuters poll median estimate of 54.3.

The improvement was led by services businesses, which reported a modest re-acceleration in activity and new work following their weakest growth in 53 months in July.

Manufacturing growth continued to weaken, with the HSBC Flash India Manufacturing PMI falling for a third consecutive month to 52.9, its softest level in five years.

The composite index remained above the 50-mark separating growth from contraction, though it stayed well below the roughly 60 average recorded earlier in 2026.

The figures paint a mixed picture for India’s economy, with services offering support even as factory output growth keeps losing momentum into the year’s final months.

Business sentiment for the year ahead improved across both the manufacturing and services sectors compared with July, according to the survey data.

The Reuters poll of economists had pegged the composite PMI at 54.3 for August, meaning the actual reading of 54.6 came in slightly above expectations.

The PMI survey is compiled by S&P Global from responses submitted by private-sector companies each month, and is closely watched as an early indicator of economic momentum ahead of official government data.

July’s composite reading of 54.3 was itself the weakest in over four years, making August’s modest uptick to 54.6 a break from what had been a multi-month slowing trend.

The HSBC Flash India Manufacturing PMI fell for a third straight month to 52.9, its weakest reading in five years, even as it stayed above the 50-mark that separates growth from contraction.

Job creation across India’s private sector accelerated to its fastest pace since June 2025, with the services sector leading the pickup in hiring.

Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0

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Business

Markets bounce back: Where the Sensex and Nifty stand after three sessions

The Sensex rebounded 879 points to close at 72,472.33 and the Nifty gained 289 points to 22,520.45 on October 9, snapping a two-day losing streak as IT stocks rallied and crude prices eased.

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On October 7, the Sensex fell 429 points.

On October 8, it fell 1,045 points to 71,593.24.

On October 9, it rose 879 points to 72,472.33.

The Nifty closed at 22,520.45.

The RBI’s rate hike, oil prices and foreign selling remain in focus.

The Nifty IT index was the biggest gainer, up 3.02%, followed by the Nifty FMCG index, up 2.20%, according to Upstox.

One analyst credited Tata Consultancy Services’ better-than-expected September quarter results for lifting the IT sector.

Apollo Hospitals, ITC and Eicher Motors were the top Nifty gainers, according to Business Standard.

Among Sensex stocks, ITC, TCS, Adani Ports, Infosys and HCL Tech were the major gainers, and ITC rose 4.78%.

Reliance Industries was the only major Sensex laggard, with its shares falling 0.55%.

Global crude prices were trading below $103 a barrel on Friday, after reaching $105.02 a barrel on the previous evening.

Lower oil eased concerns over inflation and corporate profits.

Reduced fears of an immediate escalation between the US and Iran also helped restore risk appetite, according to one report.

Another report attributed the rebound to value buying and short covering after the sharp correction.

At 1 pm the Sensex was up 828 points, and at 3 pm it was up about 1,043 points before easing at the close.

In the closing auction session, the Nifty was at 22,535.65, which is why the headline figure differs from the settled 22,520.45.

The RBI had raised the repo rate by 25 basis points to 5.50% on October 7, its first hike since February 2023.

On October 8, the Sensex had fallen 1,045 points to 71,593.24 and the Nifty 371 points to 22,231.80.

The Sensex is the 30-share index of the BSE, and the Nifty 50 is the benchmark index of the NSE.

This report is not investment advice, and market direction can change quickly.

National Stock Exchange of India, Mumbai (file image), Wikimedia Commons, CC BY-SA 4.0

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US sanctions on Indian firms explained: Allegations, scope and next steps

The US State Department has sanctioned two Mumbai-based companies and five Indian nationals over alleged dealings in Iranian petroleum products, as part of a wider action against 10 entities, six individuals and five vessels.

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The US alleges that two Mumbai firms facilitated imports of Iranian petroleum products.

These are allegations, and the reports carried no response from the firms.

Five Indian nationals linked to the firms are also sanctioned.

Samudra Marine Services has until October 23 to wind down.

The Indian government has not commented in the reports.

The five Indian nationals are linked to the two companies and are blocked from transactions related to their respective firms.

This report does not name the individuals, because the reports describe allegations only.

The State Department’s overall action covered 10 entities, six individuals and five vessels tied to Iranian-origin petroleum, petroleum products and petrochemical products.

The department says that the entities channelled millions of dollars to Iran.

The US Treasury Department separately sanctioned 17 entities and their shadow fleet vessels.

Samudra Marine Services has been authorised to carry out wind-down transactions until October 23, 2026.

The action is part of Operation Economic Outcast, a US campaign to cut off Iran’s oil revenue.

A shadow fleet generally means vessels used to move sanctioned oil outside normal shipping oversight.

The Tribune’s report, based on PTI, did not carry a statement from the Indian government or the Ministry of External Affairs.

Coverage noted that the sanctions could affect India’s energy interests, despite recent limited resumptions of Iranian oil purchases, according to The Daily Jagran.

US sanctions can block the sanctioned persons’ assets under US jurisdiction and bar US persons from dealing with them.

Companies outside the US can face secondary consequences if they deal with sanctioned entities.

Brent crude was trading above $100 a barrel this week amid supply concerns in the Middle East.

On the same day, Indian shares fell sharply as Brent rose above $104 a barrel.

The figures for the total number of entities and vessels vary by agency, so readers should check the official State and Treasury releases.

Oil products tanker (representative image), Wikimedia Commons, CC BY-SA 4.0

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Business

Two-day fall explained: Sensex has lost about 1,475 points since October 6

The Sensex fell 1,045 points to 71,593.24 and the Nifty lost 371 points to 22,231.80 on October 8 as Brent crude rose above $104, foreign investors kept selling and the RBI’s rate hike weighed on sentiment.

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The Sensex closed at 73,067.81 on October 6.

It closed at 71,593.24 on October 8.

That is a fall of about 1,475 points in two sessions.

Oil, foreign selling and the RBI’s rate hike were the main factors.

This report is not investment advice.

The Nifty Metal index fell 3.55%, the Nifty Realty index fell 3.16% and the Nifty Oil and Gas index fell 2.52%.

Infosys, Tech Mahindra and Axis Bank were among the Nifty gainers.

Adani Enterprises, JSW Steel and ITC were among the biggest Nifty losers.

Brent crude was above $102 in early trade and stood at $104.47 a barrel in the afternoon, according to Kotak Neo.

WTI November futures were at $91.95 a barrel.

Business Standard’s close report carried the headline that oil tops $104 and that the volatility index jumped 10%.

Elevated crude prices were tied to Middle East supply concerns, attacks on ships in the Gulf and the Strait of Hormuz.

Rising US bond yields and persistent foreign institutional investor selling also weighed on the market.

The RBI had raised the repo rate by 25 basis points to 5.50% on October 7, its first hike since February 2023.

Kotak Neo said that the weak trend is likely to persist while oil stays elevated and foreign investors keep selling.

On October 6, the Sensex had closed at 73,067.81 and the Nifty at 22,776.10.

From that close, the Sensex has lost about 1,475 points in two sessions and the Nifty about 544 points.

On MCX, December gold futures were at Rs 1,49,300 per 10 grams, up 0.13%, and silver was at Rs 2,21,440 a kg, down 0.95%.

India imports most of the crude oil it uses, so a rise in global prices weighs on inflation and the rupee.

The India VIX measures expected volatility, and a jump in it means traders expect bigger swings.

Dalal Street, Mumbai (file image), Wikimedia Commons, CC BY-SA 3.0

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