What is the India services PMI and why does 58.0 matter?

The India services PMI is a monthly survey that tracks services activity. A reading above 50 signals expansion. At 58.0, it shows growth is still strong but slower than November. For Canadian investors, it suggests steady demand with cooler momentum, guiding position sizing, earnings assumptions, and currency hedging.

How does the India composite PMI affect markets?

The India composite PMI combines manufacturing and services. At 57.8, it indicates the economy is expanding, though at a cooler pace. Markets may trim near-term optimism, but sustained expansion supports medium-term earnings. Investors in Canada can stay invested while focusing on quality, cash flow, and disciplined entry points on weakness.

What does the manufacturing slowdown imply for portfolios?

A softer India manufacturing PMI can weigh on cyclicals tied to capex and exports. It also nudges the composite PMI lower. Portfolios can respond by prioritizing quality and balance sheets, diversifying across services, and monitoring currency exposure. Watch upcoming results and guidance to see if demand stabilizes and margins hold.

Should Canadian investors hedge INR exposure now?

Hedging depends on mandate, time horizon, and risk budget. With India services PMI moderating but still strong, we prefer partial or dynamic hedging rather than fully hedged or unhedged extremes. This approach can reduce currency-driven volatility while preserving upside if growth and capital inflows keep the rupee broadly supported.

Global Market Insights

India PMI Today, January 6: Services Growth Slows to 11-Month Low

ByDanny Kontos January 6, 2026January 6, 2026

India services PMI slipped to 58.0 in December from 59.8, marking an 11-month low while staying well above the 50 expansion mark. The India composite PMI eased to 57.8 as manufacturing cooled, pointing to slower momentum into early 2026. For Canadian investors, this matters for EM allocations, currency moves, and earnings assumptions tied to India’s growth cycle. We break down what the moderation signals for flows, sectors, and rate expectations, and how to position portfolios from a Canada-based perspective today.