Listen In: Drop in services PMI worrisome, GDP hit likely

Markets have touched a new low as news of slowdown impacting services appeared. Sensex is trading 139 points lower at 17,324, while Nifty is down 44 points at 5,214.

Services PMI fell to a 30 month low of 49.1. The seasonally adjusted HSBC Markit Business Activity Index, based on a survey of around 400 firms slumped to its lowest level in 30 months and below the 50 mark which separates growth from contraction.
Meanwhile, Hindustan Unilever saw some profit booking with the stock down 2% at Rs 381.50.
Banking stocks are leading the fall with HDFC Bank and Axis Bank falling by nearly 2%.
Anil Ambani group companies have also started to fall with Reliance Capital and Reliance Communication touching the days low. CLICK TO HEAR moneycontrol.com's Sagar Salvi and Shishir Asthana, Investment Editor, firstpost.com, discuss the markets.