India's services sector exhibited slight growth in April 2025, recovering from the slower pace of expansion witnessed in March. According to the HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, the index rose to 58.7 in April from 58.5 in March. Although this shows growth, it was slightly lower than the initial estimate of 59.1. The PMI above 50 indicates growth, while anything below suggests contraction. The rise in PMI indicates a healthy increase in business activity in the services sector, driven primarily by strong demand and expanding new business volumes.

A key feature of this growth is the sharp increase in international demand, particularly in export orders, which have risen at the fastest rate since July 2024. The services sector in India continues to show resilience despite geopolitical and global economic challenges. Finance and insurance were among the top-performing sub-sectors, registering the highest growth rates for both output and new orders. Service providers also responded to increasing demand by hiring more staff, continuing a trend of job creation that has lasted for 35 consecutive months.

While demand remains robust, business sentiment has been under pressure for a fifth consecutive month, reaching its lowest point since mid-2023. Increasing competition and the broader economic environment appear to be factors contributing to this decline in optimism.

From a pricing standpoint, input cost inflation has eased, offering some relief to businesses. As a result, companies have taken advantage of this shift by raising their selling prices faster than in previous months. The easing of cost pressures is positively impacting the Reserve Bank of India, giving the central bank more room to maneuver, including the possibility of rate cuts in the coming months. Economists expect the RBI to reduce its key repo rate by 50 basis points in 2025, with further cuts potentially on the horizon.

In terms of overall economic performance, the HSBC India Composite PMI, which includes both manufacturing and services, saw an increase to 59.7 in April from 59.5 in March, reflecting the strongest expansion in private sector activity since August 2024.

This growth is driven by multiple factors including rising international demand, business investments, and job creation. However, the overall optimism is still tempered by concerns over increasing competition and the complex global economic environment.

With this moderate growth, experts expect India’s services sector to continue benefiting from strong demand and easing cost pressures, though business sentiment might remain cautious for the near future.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.