Sensex falls as services PMI falls to lowest in 4 years

Reuters Market Eye - The BSE Sensex was trading in the red after rising to above 20,000 as activity at services companies shrank at their fastest pace in more than four years last month, a survey showed on Friday.

The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, slipped from 47.6 in August to 44.6 in September, its weakest since April 2009.

Tata Motors Ltd shares gain 3.8 percent after Deutsche Bank upgrades the stock to "buy" from "neutral" and raises its target price to 400 rupees from 275 rupees, citing an improving global economy.

Software services exporters gain on bets for an improving business outlook in key markets. Tata Consultancy Services Ltd rises 1.35 percent and Tech Mahindra Ltd is up 2.16 percent.

 

Tata Communications Ltd is up 0.4 percent, heading for a third day of gains on a potential takeover of its unit Neotel by South Africa's Vodacom Group .

Jet Airways (India) Ltd shares rise as much as 7.2 percent after India's cabinet approved on Thursday a $330 million deal by Abu Dhabi's Etihad Airways to buy a stake in Jet Airways.

The BSE Sensex was down 42 points while the Nifty fell 17 points at 1105 am.

(Reporting by Abhishek Vishnoi)