New Delhi, Oct. 1 -- India's manufacturing sector is expected to maintain improving demand momentum in the coming months as new orders and output strengthened in September, while manufacturers turned more optimistic about future sales, according to the HSBC India Manufacturing PMI released by S&P Global.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose to 55.1 in September from 52.8 in August, marking the strongest improvement in the health of the manufacturing sector in seven months. The survey also showed that business confidence rose to a four-month high, supported by new enquiries and expectations of favourable demand conditions.

"India's factory sector ended the quarter on a firmer footing. The...