Services activity at 10-mth high as new orders surge
The HSBC India Services PMI business activity index, based on a single question asking how the level of business activity compares with the situation in the month before, rose from 58.8 in May to 60.4 in June. Companies linked the upturn to positive demand trends and ongoing improvements in sales.
The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to questionnaires sent to 400 service sector companies.
Overseas demand particularly improved from the Asian, West Asian and US markets, according to survey participants.
"New export orders also expanded, albeit at a softer pace. Margins improved as the rise in input costs was below that seen for output charges. Service providers remained optimistic about future growth, though their confidence faded a tad," said Pranjul Bhandari, chief India economist at HSBC.
Data indicated that expansions in output and new orders remained broad-based during June. Finance and insurance topped the growth rankings. For both measures, the slowest expansions were in real estate and business services.
The survey showed that ongoing expansion of service sector had a positive impact on jobs. Employment rose for 37th consecutive month in June, with the rate of job growth outpacing its long-run average, despite slowing from May's record.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
41 minutes ago
- Mint
FPI selling returns! ₹5,700 crore outflows recorded in just four sessions of July. What's behind the trend?
The Indian stock market witnessed a reversal in overseas investor activity in early July, as the lack of clarity surrounding the India–US trade deal, stretched valuations, and global trade uncertainty with reciprocal tariffs expected to take effect weighed on FPI sentiment. After remaining net buyers in the Indian stock market over the last three months, FPIs pulled out ₹ 5,772 crore in the first four trading sessions of July, remaining net sellers on each day. In June, they invested ₹ 7,488 crore, and in May and April, they bought ₹ 19,686 crore and ₹ 4,223 crore worth of Indian stocks through the exchanges, respectively. Though FPIs invested over ₹ 31,000 crore between April and June, the aggressive selling during the first quarter of 2025 more than offset the recent inflows, keeping their overall stance negative for the year so far. Total outflows now stand at over ₹ 1 lakh crore. They had withdrawn ₹ 3,973 crore in March, ₹ 34,574 crore in February, and a substantial ₹ 78,027 crore in January. According to market experts, stretched valuations are among the key reasons behind the shift in FPI stance in early July. The Nifty 50 has rebounded 17% from its April lows, pushing index valuations above long-term averages. At the same time, valuations in other Asian markets are trading at a discount to India, which experts believe could divert FPI inflows away from Indian equities. The Nifty's 12-month forward P/E ratio now stands at 21.7x, which is a 5% premium to its long-period average (LPA) of 20.7x. In contrast, its forward P/B ratio is 3.2x, a 14% premium to the historical average of 2.8x. The 12-month trailing P/E for the Nifty is at 24.5x, above its LPA of 22.8x (a 7% premium). Its trailing P/B ratio, at 3.6x, is also above the historical average of 3.1x, representing a 15% premium. The Nifty is currently trading at a 12-month forward return on equity (RoE) of 15%, above its long-term average. India's market cap-to-GDP ratio is currently at 127% of FY26E GDP (up 10.8% YoY), significantly above its long-term average of 87%. It had risen from 80% in FY19 to 132% in FY24 and 126% in FY25, after hitting a low of 57% in March 2020, as per the domestic brokerage firm Motilal Oswal. Although overseas inflows remain volatile, domestic equities continue to hold firm, supported by strong participation from domestic institutional investors, who poured ₹ 3.6 lakh crore so far in 2025. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, "In the first four days of July, FIIs were sellers every day, with a cumulative sell figure of ₹ 5772 crores. In the second half of June, FIIs were buyers in financials, autos and auto components, and oil and gas. They were sellers in capital goods and power. There is a trend of profit booking in segments that have done well recently." "Resumption of FII buying will hinge on two things: One, if a trade deal happens between India and the US, that will be positive for markets and FII flows; two, Q1FY 26 result indications. If the results indicate earnings recovery, that will be positive. Disappointment on these factors can impact the market and, thereby, FII flows," he further added.
Time of India
an hour ago
- Time of India
Samsung Electronics Q2 profit likely to drop 39% on weak AI chip sales
Synopsis Its key rivals, SK Hynix and Micron, have benefited from robust demand for memory chips needed for AI, but Samsung's gains have been subdued as it relies on the China market, where sales of advanced chips have been restricted by the US. Its efforts to get the latest version of its HBM chips to Nvidia certified by Nvidia are also moving slowly, analysts said.
Time of India
an hour ago
- Time of India
Coursera appoints Ashutosh Gupta as managing director for India, Asia Pacific
Online learning platform Coursera on Monday announced the appointment of Ashutosh Gupta as Managing Director for India and the Asia Pacific. In this role, he will lead the company's enterprise business across the region, working closely with companies, campuses, and governments to equip students, citizens, and employees with skills for the digital economy. 'Ashutosh's deep experience in the region and his work with mission-driven organisations make him an ideal leader to drive Coursera's next phase of growth in Asia Pacific,' said Karine Allouche, General Manager, Enterprise, Coursera. 'His understanding of public-private partnerships and track record of scaling regional businesses will be critical as we help institutions across the region navigate rapid change and prepare their communities for an AI-driven future.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She Was Everyone's Dream Girl In 90's, This Is Her Recently. Investructor Undo Gupta has more than two decades of leadership experience in India and Southeast Asia, with a focus on business growth, digital innovation, and scaling operations. Most recently, he served as an Operating Partner at Avataar Ventures, advising SaaS companies on go-to-market strategy and revenue acceleration across India, Southeast Asia, and the Middle East. Prior to that, he was the Country Manager for LinkedIn India and led LinkedIn Marketing Solutions' mid-market and SMB business across APAC. He has also held senior roles at Google, Cognizant, and Infosys , leading global transformation programmes and managing strategic client relationships. Live Events 'Asia Pacific, with its large and young population, is at the heart of AI-led transformation. Having worked closely with institutions across the region, I've seen the value of trusted, flexible, and job-relevant learning first-hand, and I'm excited to build on Coursera's mission and help more learners unlock opportunity at scale,' said Gupta. His appointment comes at a critical time as the edtech platform deepens its presence in Asia Pacific, where demand for industry-aligned micro-credentials, AI-powered tools, and credit pathways is accelerating. Coursera has more than 59 million learners and hundreds of enterprise customers across the Asia Pacific.
