Rupee Extends Gains To Fifth Session

Rupee is stronger in early trade, USD/INR down 0.0440 at 72.9662, INR extending gains for a fifth session and the eighth of the past nine sessions. Markets continue to digest robust GDP data yesterday, while August manufacturing PMI slipped to 52.3 from 55.3 previously.

• Commenting on the PMI release, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: "August saw a continuation of the Indian manufacturing sector recovery, but growth lost momentum as demand showed some signs of weakness due to the pandemic. Yet, factory orders and output rose across the consumer, intermediate and investment goods categories. The 12-month outlook for production remained positive, though confidence faded amid worries concerning the lasting scars of the pandemic and the adverse impact of rising costs on companies' finances parallel to a lack of pricing power."