New Delhi, Feb. 4 -- India's services sector activity strengthened in January, with the Services Purchasing Managers' Index (PMI) rising to a two-month high of 58.5, while the Composite PMI, which combines manufacturing and services, increased to 58.4, according to data released by HSBC.

The seasonally adjusted HSBC India Services PMI(R) Business Activity Index, which is based on a single question assessing changes in business activity compared to the previous month, rose to 58.5 in January from December's recent low of 58.0. The latest reading was consistent with a historically sharp rate of expansion.

HSBC noted that January data showed the domestic market remained the main source of new business gains, although international orders a...