Indian Rupee rebounds as MSCI rebalancing draws billions

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The rebalancing of MSCI's equity indexes, effective after the markets close on Monday, is estimated to attract $2.5 billion of passive inflows into Indian stocks, according to estimates by Nuvama Alternative & Quantitative Research.

The HSBC Flash India Composite Output Index rose to 59.5 in November from a final reading of 59.1 in October. 

The HSBC Flash India Manufacturing Purchasing Managers Index (PMI) eased to 57.3 in November from the previous reading of 57.5. The Services PMI improved to 59.2 in November from 58.5 in October.

"Services saw a pick-up in growth, while the manufacturing sector managed to outperform expectations, despite a marginal slowdown from its October final PMI reading...Meanwhile, price pressures are rising for raw materials used by manufacturers, as well as food and wage costs in the services sector," noted Pranjul Bhandari, chief India economist at HSBC.

The US S&P Global Composite PMI climbed to 55.3 in November's flash estimate from 54.1 in October. Meanwhile, the Manufacturing PMI improved to 48.8 in November versus 48.5 in October. The Services PMI rose to 57.0 in November from 55.0 in the previous reading, beating the estimation of 55.3.

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