After robust services PMI data showed that the manufacturing sector is growing at a robust pace, providing a big boost to the Narendra Modi-led government at the centre, Anshul Saigal of Kotak PMS noted that economic activity is indeed improving. \u201cEconomic activity on the ground on manufacturing is improving. GST plays which suffered last year because of supply chain getting affected, are coming back into vogue this year. A lot of things in the micro are improving,\u201d Anshul Saigal, head and portfolio manager, Kotak PMS said in an interview to CNBC TV18. Notably, the latest Nikkei Markit India Manufacturing Purchasing Managers\u2019 Index (PMI) \u2014 an indicator of manufacturing activity \u2014 surged from 51.2 in May to 53.1 in June. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity. \u00a0Notably, this is the fastest growth recorded in the last one year period. This improvement in manufacturing output was a result of favourable demand conditions including new orders from key global markets, the survey said. \u201cIndia\u2019s manufacturing economy closed the quarter on a solid footing against a backdrop of robust demand conditions, highlighted by the sharpest gains in output and new orders since last December,\u201d said Aashna Dodhia, Economist at IHS Markit and author of the report. However, while the economic growth has been robust, Anshul Saigal notes that the market is in no mood to buy into this strength fundamentally. Given the recent midcap rout, and stocks falling specifically of news flows, Saigal said that if quality businesses correct on news, they may become good buying opportunities. Is the Rupee recent rout beneficial to the IT sector? \u201cIT has seen a huge rally as there has been a risk-off trade. In trades like that IT becomes the hiding space. In the last 6 months, IT has given stellar returns. At a time when the broader markets have been falling. Infosys is up 22% in the last 6 months. In light of this rally, one would be a bit more cautious in this space than before,\u201d he noted.