HSBC Holdings Plc reported Thursday that India's economic activity held steady in May compared to the prior month, according to a flash Purchasing Managers' Index survey. The gauge showed no meaningful shift in business conditions across manufacturing and services, suggesting the economy avoided a slowdown at a time when global growth concerns weighed on sentiment.

The finding carries weight because investors had been watching for any signs of weakness amid an uncertain global backdrop. A flat reading keeps pressure off India's central bank to cut interest rates and reassures markets that domestic demand remains intact. The flash PMI provided early insight before official government data arrives.

For businesses, the stable reading removes a source of worry but signals no acceleration either. Investors will need stronger data to push sentiment higher. The economy's steadiness in May suggests India continues to weather external headwinds without a clear uptick.