India’s Services Sector Surges in March Amidst Cooling US Services Activity

Market snapshot: The global economic landscape in March 2026 presents a sharp contrast between emerging market resilience and cooling demand in the US. India's S&P Global Services PMI rose to 57.5, surpassing both the previous month's 57.2 and market expectations. Simultaneously, the Indian Composite PMI moved up to 57.0. Conversely, the US ISM Non-Manufacturing PMI dropped significantly to 54.0, missing the consensus estimate of 54.8 and falling from a previous 56.1.

Summary: India's services sector continues to expand robustly with a PMI of 57.5, while US services momentum slowed more than expected to 54.0 in March.

Key Takeaways

• India's Services PMI at 57.5 signals the strongest expansion in recent months, driven by domestic demand.
• The Indian Composite PMI rise to 57.0 indicates broad-based growth across manufacturing and services.
• US ISM Non-Manufacturing PMI at 54.0 suggests a cooling services sector, potentially impacting Fed rate trajectories.

SAHI Perspective

The divergence between Indian and US PMI data underscores India's structural domestic strength. While the US is feeling the pinch of sustained high interest rates leading to a slowdown in services activity, India's services sector remains a primary engine of growth. For traders, this reinforces a bullish outlook on Indian domestic-focused stocks, particularly in the banking and consumer services sectors, while warranting caution in US-facing export sectors.

Closing Insight

India remains a global outlier in economic resilience, making it a preferred destination for equity allocation amidst global macro uncertainty.

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