A figure above 50 indicates that the sector is expanding, while a figure below that level means contraction.
    
"Service sector activity grew in November, as new business rose for the seventh month running," HSBC Chief India Economist Pranjul Bhandari said.
    
The survey further said that notwithstanding the strong order flows, business sentiment slipped to the weakest level since mid-2007.
    
"Despite the uptick in order flows, business sentiment deteriorated, reminding us that continued policy action that addresses investor concerns is needed to sustain growth momentum," Bhandari said.
    
Meanwhile, the headline HSBC Composite Output Index, that maps manufacturing as well as services sectors output also climbed to five-month high of 53.6, up from 51.0 in October.


    
Growth of activity and new business had little impact on service sector employment in November as workforce numbers in the Indian service sector declined for the first time in four months.
    
Meanwhile, prices dipped on falling commodity prices and increased competition.
    
Calls for a rate cut had been growing in the run up to the policy announcement, with Finance Minister Arun Jaitley also pitching for lower the cost of capital to boost growth.
    
However, RBI Governor Raghuram Rajan on Tuesday kept interest rates unchanged, saying a shift in stance is 'premature' but hinted that a cut may come early next year if inflation continues to ease and the government acts on the fiscal side.
    
Jaitley had recently said a whole set of second generation reforms would be unveiled in the next Budget and added that his immediate target is Insurance Amendment bill, Coal Ordinance and the GST bill.

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