The latest PMI showed inflation pressures ebbed further last month with both costs of raw material and prices charged rising at a slower pace than March.
The index, however has remained above the 50 mark - below which it indicates contraction - for more than three years now.
India's manufacturing sector growth improved in November, registering the fastest pace in five months, driven by a strong pick up in new orders and improved purchasing activity, an HSBC survey said on Monday.
India's manufacturing sector witnessed a slowdown in July - the weakest growth rate since November - because of moderation in domestic and export orders amid sagging global economy, an HSBC survey said.
The recovery in the Indian services sector was sustained in November as new work orders supported business activity growth and the first rise in employment in nine months, a monthly survey said on Thursday.
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- fell to 52.3, down from October's 22-month high of 54.4.
A reading above 50 indicates expansion while a one below this level means contraction.
India's manufacturing sector growth slowed marginally in February, although strong domestic orders were likely to support output expansion in the coming months, an HSBC survey has said.
Bumper liquidity as a result of global central bank stimulus measures should prevent a sharper downturn.
Input prices rose at their fastest rate in 14 months but manufacturers absorbed much of the increase
The improvement in business conditions promoted job creation, while confidence towards the year-ahead outlook for activity was at a four-month high during March.
Financials emerged as the top gainers while auto shares rallied on robust September sales
A reading above 50 means the sector is expanding, while a reading below 50 means contraction.
Manufacturing growth in India lost momentum in February.
The Nikkei India Services Purchasing Managers' Index, which tracks services sector companies on a monthly basis, stood at 52 in September, down from August's 43-month high of 54.7, pointing to a slower and moderate rate of expansion.
The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- an indicator of manufacturing activity -- fell to 49.6, down from 52.3 in November, coming below the crucial 50 threshold which separates contraction from expansion.
Manufacturing production growth eased in May, which combined with the slowdown in services resulted in a weaker increase in private sector output, the survey said.
The NSE Nifty, however, ended a shade higher by 6.65 points or 0.06 per cent at 10,442.20
That prompted manufacturers to add jobs for the first time since June.
Regarding employment, the manufacturing sector hiring remained broadly unchanged.
The survey showed firms passed on a greater cost burden to consumers. Prices charged rose at their fastest pace since October.
The HSBC Emerging Markets Index, a monthly indicator derived from Purchasing Managers' Index surveys, inched up to 50.6 in May from 50.4 in April, indicating weak output growth across global emerging markets.
HSBC's purchasing managers' index was released on Tuesday.
Losses largely came from the metal index, followed by power, infrastructure, realty, PSU, oil and gas, capital goods, FMCG, healthcare, auto and banking.
The GST rate for the sector has not yet been finalised by the government.
A reading above 50 represents expansion while one below means contraction.
Manufacturing of consumer goods, like food and liquor continued to improve in September.
The NSE Nifty gained 77.85 points, or 0.71 per cent, to finish at 11,008.30. Intra-day, it shuttled between 10,821.55 and 11,035.65.
The Nikkei Markit India Manufacturing Purchasing Managers' Index increased to 50.7 in February
Supported by greater demand from both domestic and external markets, total new business rose at the fastest pace since March
India's manufacturing sector activity contracted for the third straight month in October amid falling levels of production and new orders, as the business climate within the country remained tough, an HSBC survey said on Friday.
The HSBC/Markit Purchasing Managers Index for the services industry fell to 46.7 in December from 47.2 in November, registering the sixth consecutive monthly drop in output levels, the longest period of continuous reduction since the 2008/2009 global financial crisis.
India's manufacturing sector activity contracted for the second consecutive month in September as both output and new orders witnessed a decline, an HSBC survey said.
The benchmark BSE Sensex ended down 2.23 per cent. The Bank Nifty fell 3.59 per cent.
n the broader market, both the BSE Midcap and Smallcap indices, were up 1.2% and 0.7% each.
Market sentiment suffered a jolt after other Asian markets closed with widespread losses and European markets dropped in early trade
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Likely to set the ball rolling for Rs 1.72-lakh-cr projects today
Although growth picked up slightly across the world's main emerging markets on an average, rates of expansion remain subdued
According to bankers and economists, there is room for further rate cut by the RBI as retail and wholesale inflation rates have remained benign.
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