Services Growth Rises To A Two-Year High Level

The growth graph for India's services industry, including software and telecommunications registered a climb touching a two- year high level in June. In addition, it continued to impose pressure on the central bank to hike interest rates and lower inflation levels.

The HSBC Holdings Plc. and Markit Economics' Purchasing Managers' Index climbed to 64 from 58.2 in May, uncovered an e- mailed report today.

Inflation is expected to rise by about a percentage point following government revisal of fuel prices on June 25, the Reserve Bank of India augured.

The benchmark wholesale-price inflation rate jumped to 10.16 percent in May.

"Pressures from inflation appear to be intensifying and further monetary tightening is not ruled out", quoted, Pradeep Madhav, the Mumbai-based Chief Operating Officer at Securities Trading Corp. of India, a primary dealer that underwrites Government debt sales.

The Reserve Bank hiked the reverse repurchase and repurchase rates to 4% and 5.5%, respectively, on July 2.

Prime Minister Manmohan Singh introduced cuts on subsidies offered in gasoline, triggering refiners to charge nearly 3.5 Rupees (7.5 cents) more a liter.

India's $1.2 trillion gross domestic product marked a growth 8.6% in the first quarter of this year compared to figures recorded in the previous year, ranked after China and Brazil among major economies.