The official manufacturing Purchasing Manager's Index (PMI) fell slightly to 51 in August from 51.1 in July, data from the National Bureau of Statistics showed on Monday

Rising coronavirus cases, along with some other factors, has put a negative impact on the economic recovery, which has plateaued in the last few weeks, a report by HSBC Global Research said

Energy firms gained on higher crude prices as sentiment was upbeat in domestic and global energy stocks with Brent crude hitting its highest level since July 2015 after Saudi Arabia agreed to support the extension of a global oil production cut agreement. While Reliance Industries gained over 1 percent, the ONGC stock rose up to 4 per cent post its Q2 earnings.

Asian shares tumbled on Wednesday as oil prices dropped for a third day, prompting investors to seek shelter in safe-haven assets and lifting bonds and gold to multi-month highs.

The June IIP touched a 4-month high mainly due to a rise in government spending.

The Nikkei Services Purchasing Managers' Index, compiled by Markit, dropped to a 15-month low of 47.7 in June from May's 49.6, well below the 50-level that separates growth from contraction.

The HSBC India Purchasing Managers' Index (PMI) fell to 51.3 in June from 52.6 in May, amid slowest rise in new orders since September 2014.

Though the robust GDP growth presented a rosy picture for Indian economy, there was a disconnect with some of the micro-level indicators.

The HSBC India Services Business Activity Index fell to 49.6 in May, from 52.4 in April since output prices in the private sector rose further, with the rate of inflation strongest in 13 months.

An estimated 10,000 to 20,000 jobs will be axed, Sky News said, citing unidentified sources.

The HSBC Manufacturing Purchasing Managers' Index, compiled by Markit, rose to 52.6 in May.

The market expects RBI Governor Raghuram Rajan to cut rates by at least 25 basis points. The only hindrance this time could be the rupee, hovering at 64-levels against the dollar.

\"The contraction in services sector activity for the second month running, also resulted in some job losses and companies adopted a cost-cautious approach towards hiring\", the survey said.

The headline HSBC India Purchasing Managers' Index stood at 51.3 in April, down from 52.1 in March, pointing to a weaker improvement in operating conditions across various industries.

Slowdown in reform process and taxing of FIIs are uncertainties that are currently surrounding the market. These concerns have resulted in the Indian market slowly losing steam.

China grew at its slowest pace in six years at the start of 2015 and weakness in key sectors suggested the world's second-largest economy was still losing momentum.

Base metal prices are expected to trade lower owing to estimates of weak inflation data from China.

March saw the level of new business placed with Indian services companies increase. But the rate of expansion was less than in the previous month.

\"India's service sector ended the first three months of 2015 with a strong performance, providing signals that much of the weakness seen in 2014 has been left behind,\" said Pollyanna De Lima, economist at Markit.

The untimely rains damaging crops is one reason markets expect the RBI to oblige with a rate cut. But the surprise rate cut on March 4 is a reason why markets feel a rate cut is a low probability.