Demand from abroad remained firmly in contraction territory as many countries reimposed lockdown measures to contain a fresh spike in Covid-19 cases.(HT Photo)
Demand from abroad remained firmly in contraction territory as many countries reimposed lockdown measures to contain a fresh spike in Covid-19 cases.(HT Photo)

India’s services sector loses more steam in December, job cuts resume

Asia’s third-largest economy has been gradually recovering from a coronavirus-induced recession but is not expected to return to pre-pandemic levels soon, especially within the service industry - the engine of economic growth and jobs in the country.
By Reuters | Posted by Srivatsan K C | Bengaluru
PUBLISHED ON JAN 06, 2021 10:46 AM IST

Growth in India’s dominant services industry continued to lose momentum in December as a resurgence in coronavirus infections weighed on new business and employment, a private survey showed on Wednesday.

Asia’s third-largest economy has been gradually recovering from a coronavirus-induced recession but is not expected to return to pre-pandemic levels soon, especially within the service industry - the engine of economic growth and jobs in the country.

The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 52.3 in December from November’s 53.7 but held above the 50-mark separating growth from contraction for a third straight month.

“A spike in Covid-19 cases was reported as a key factor restricting growth of new work intakes among service providers, which in turn curbed the rise in output and led to increased business uncertainty about the outlook,” Pollyanna De Lima, economics associate director at IHS Markit, said in a release.

“It is clear that the early part of 2021 will continue to be challenging and we’re looking at a sustainable recovery and some return to normality once Covid-19 vaccines become available.”

India has the second-highest number of coronavirus infections in the world. On Sunday it approved two coronavirus vaccines for emergency use but it could take years to vaccinate over 1.3 billion people with its rudimentary healthcare system.

Although a sub-index monitoring overall demand ended a rough 2020 in growth territory, it declined to a three-month low as night curfews in some major cities depressed demand.

Demand from abroad remained firmly in contraction territory as many countries reimposed lockdown measures to contain a fresh spike in Covid-19 cases.

Weak demand forced firms to lower their prices despite an uptick in input costs, which increased at the quickest pace since February.

Meanwhile, job market conditions darkened, slipping back into contraction, although the pace of job shedding remained minimal.

“Given the damaging impact of the pandemic on the service economy, some companies are facing financial difficulties, which is preventing staff hiring. December saw the ninth round of job shedding in ten months,” De Lima added.

Optimism about the next 12 months faded at the end of the year as firms were concerned about the uncertainty surrounding the pandemic, the rupee’s depreciation and rising inflationary pressures, the survey showed.

Despite a pick-up in factory activity, sluggish demand for services meant the India composite PMI fell to a three-month low of 54.9.

SHARE THIS ARTICLE ON
Close
Sensex opens 250 points higher at 50,678; Nifty begins session above 15,000-level
Sensex opens 250 points higher at 50,678; Nifty begins session above 15,000-level

Sensex rebounds over 270 points in early trade; Nifty reclaims 15,000-level

PTI
UPDATED ON MAR 08, 2021 09:54 AM IST
On the Sensex chart, ONGC, NTPC, Axis Bank, M&M, HDFC Bank and SBI were major gainers – climbing as much as 4.3 per cent.
Close
Gold price saw a huge decline last week.(Reuters Photo)
Gold price saw a huge decline last week.(Reuters Photo)

Gold price recovers from 9-month low: Here's why

By hindustantimes.com | Edited by Amit Chaturvedi
UPDATED ON MAR 08, 2021 07:59 AM IST
Last week, the price of the precious metal suffered a huge fall. However, a stronger-than-expected US non-farm payrolls data helped it recover somewhat.
Close
According to the Rural Health Survey 2018-19, there is an 85.6% shortfall of surgeons, 75% deficit of obstetricians and gynaecologists, 87.2% of physicians, and 79.9% shortfall of paediatricians in the primary health sector in rural areas.
According to the Rural Health Survey 2018-19, there is an 85.6% shortfall of surgeons, 75% deficit of obstetricians and gynaecologists, 87.2% of physicians, and 79.9% shortfall of paediatricians in the primary health sector in rural areas.

How govt plans to push health spending to target of GDP’s 2%

By Zia Haq, Hindustan Times, New Delhi
UPDATED ON MAR 08, 2021 06:02 AM IST
  • Despite decades of strong economic growth, the country’s spending on health care is barely 1% of GDP, way below Brics peer nations, resulting in serious supply-side deficits of facilities and professionals.
Close
Aditya Birla Capital, whose current market cap is <span class='webrupee'>₹</span> 30,000 crore, derives a majority of its market value ( <span class='webrupee'>₹</span>13,000-14,000 crore) from the AMC business alone.(Abhijit Bhatlekar/ Mint)
Aditya Birla Capital, whose current market cap is 30,000 crore, derives a majority of its market value ( 13,000-14,000 crore) from the AMC business alone.(Abhijit Bhatlekar/ Mint)

Birla Sun Life plans to raise 5,000 crore via share sale

By Anirudh Laskar, Hindustan Times, Mumbai
UPDATED ON MAR 07, 2021 11:54 PM IST
  • Aditya Birla Sun Life Asset Management has started talks with potential merchant bankers for the IPO, which is likely to be launched in the June quarter, said the people cited above.
Close
To put the scale in context, market leader Hero MotoCorp produced 6.5 million two-wheelers annually.(Hemant Mishra/Mint file photo)
To put the scale in context, market leader Hero MotoCorp produced 6.5 million two-wheelers annually.(Hemant Mishra/Mint file photo)

Ola aspires to pull off a Tesla, but affordably

By Madhurima Nandy, Hindustan Times, Bengaluru
UPDATED ON MAR 07, 2021 11:42 PM IST
  • The Bengaluru-based firm plans to start production as early as in June. That’s audacious, given that the land—260 acres for the plant and 240 acres for two supplier parks—is still in excavation mode.
Close
The Arbitral Tribunal, in a ruling by former Chief Justice of India AM Ahmadi on March 6, ordered the document to be binding.(File photo)
The Arbitral Tribunal, in a ruling by former Chief Justice of India AM Ahmadi on March 6, ordered the document to be binding.(File photo)

Zostel claims victory in legal row with OYO

By Tarush Bhalla, Hindustan Times, Bengaluru
PUBLISHED ON MAR 07, 2021 11:37 PM IST
  • The term sheet executed between the two parties in 2015, promised ZO Rooms’ shareholders 7% of Oyo.
Close
The government, which owns 54% in BEML, invited expressions of interest for the stake sale in the defence equipment maker, along with the transfer of management control, on January 4.(Reuters File Photo)
The government, which owns 54% in BEML, invited expressions of interest for the stake sale in the defence equipment maker, along with the transfer of management control, on January 4.(Reuters File Photo)

Suitors make a beeline for 26% stake in BEML

By Malyaban Ghosh, Utpal Bhaskar
PUBLISHED ON MAR 07, 2021 11:32 PM IST
  • Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government’s stake in BEML, the people said on condition of anonymity.
Close
The survey has been conducted against the backdrop of the economy coming out of recession in Q3 with 0.4% growth, after remaining in contraction mode for two consecutive quarters.
The survey has been conducted against the backdrop of the economy coming out of recession in Q3 with 0.4% growth, after remaining in contraction mode for two consecutive quarters.

Biz confidence at India Inc soars to 10-year high

By Rajeev Jayaswal, Hindustan Times, New Delhi
PUBLISHED ON MAR 07, 2021 11:24 PM IST
  • The survey captures the mood of the industry for the two quarters ending June 30, 2021.
Close
Union Minister for Road Transport &amp; Highways and Micro, Small and Medium Enterprises Nitin Gadkari interacts with media. (PTI File Photo)
Union Minister for Road Transport & Highways and Micro, Small and Medium Enterprises Nitin Gadkari interacts with media. (PTI File Photo)

Junk your old car, get 5% rebate from automakers on new purchase: Gadkari

PTI, New Delhi
PUBLISHED ON MAR 07, 2021 10:29 PM IST
Nitin Gadkari said, automated fitness tests will be set up under public private partnership (PPP) mode while the government will assist private partners and state governments for scrapping centres.
Close
The accused stole over 5kg of gold and 9kg of silver ornaments worth <span class='webrupee'>₹</span>2.82 crore. (HT Photo)
The accused stole over 5kg of gold and 9kg of silver ornaments worth 2.82 crore. (HT Photo)

Gold prices down over 20% from highs. Should you invest?

By hindustantimes.com | Written by Meenakshi Ray, New Delhi
PUBLISHED ON MAR 07, 2021 06:40 PM IST
Gold has been falling for the past few months and has lost more than 20% in value from the highs witnessed in August last year.
Close
Of the total investment made by Indian companies in foreign markets, USD 1.36 billion was in the form of loan; USD 297.37 million comprised as equity investment and the rest of USD 183.82 million was by way of issuance of guarantee, according to the RBI data on outward foreign direct investment (OFDI) - February 2021.(REUTERS)
Of the total investment made by Indian companies in foreign markets, USD 1.36 billion was in the form of loan; USD 297.37 million comprised as equity investment and the rest of USD 183.82 million was by way of issuance of guarantee, according to the RBI data on outward foreign direct investment (OFDI) - February 2021.(REUTERS)

RBI: India Inc's overseas direct investment falls by 31% to USD 1.85 billion

PTI, Mumbai
PUBLISHED ON MAR 07, 2021 06:27 PM IST
Domestic companies made investments of USD 2.66 billion in their overseas subsidiaries and joint-ventures in the year-ago month, February 2020.
Close
Budget deficits in the Arab Gulf, where economies are reliant on oil, widened after prices crashed.(Reuters)
Budget deficits in the Arab Gulf, where economies are reliant on oil, widened after prices crashed.(Reuters)

OPEC+ surprise sees oil soar past Gulf’s budget-balancing Levels

Posted by Harshit Sabarwal | Bloomberg
PUBLISHED ON MAR 07, 2021 06:27 PM IST
The shock move by OPEC+ triggered a rally in Brent prices, which rose to almost $70 a barrel. That’s higher than annual average levels needed for the cartel’s largest producers, including Saudi Arabia, to balance their budgets this year.
Close
Elon Musk’s tumble only underscores the hard-to-fathom velocity of his ascent.(REUTERS)
Elon Musk’s tumble only underscores the hard-to-fathom velocity of his ascent.(REUTERS)

Elon Musk’s historic wealth gains unravel with $27 billion loss

Bloomberg
PUBLISHED ON MAR 07, 2021 05:04 PM IST
Musk’s fortune hasn’t been solely subject to the forces buffeting the tech industry. His net worth has risen and slumped recently in tandem with the price of Bitcoin.
Close
WhatsApp helpline is now functional in all the 138 regional offices of EPFO.(HT File Photo)
WhatsApp helpline is now functional in all the 138 regional offices of EPFO.(HT File Photo)

How to check PF balance without Universal Account Number

By hindustantimes.com | Edited by Ayshee Bhaduri, Hindustan Times, New Delhi
PUBLISHED ON MAR 07, 2021 02:49 PM IST
  • For checking EPF balance without UAN number, users will need to log into their account through the EPF homepage at epfindia.gov.in.
Close
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )

On cryptocurrency, Anurag Thakur says ‘innovation welcomed, must evaluate ideas’

By hindustantimes.com | Written by Kanishka Sarkar, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 09:09 PM IST
Anurag Thakur’s remark comes days after the Reserve bank of India (RBI) governor Shaktikanta Das flagged “major concerns” about the impact of cryptocurrencies on financial stability.
Close
SHARE
Story Saved
OPEN APP