India's PMI rose to a two year high in december.

The New Year seems to have started on a good note for Indian stock markets that closed higher by 2.4% gains over the week. The gains were mainly supported by hopes of reforms, especially in the banking sector. The HSBC Purchasing Managers' Index (PMI) rose to a two-year high of 54.5 in December led by strong order books, suggesting that the business conditions in India have improved at a faster pace. However, the survey indicated that the job market remains tight. All sectoral indices ended on a positive note with stocks in the capital goods, consumer durables and power sector leading the gains.