The seasonally-adjusted Nikkei India Services Business Activity Index, published by IHS Markit, hit 50.2 in May, against 51 in April. A reading above 50 suggests expansion, while below it signals contraction.
Wall Street's Wednesday rout jolted the Japanese market. Both the Dow Jones Industrial Average and the S&P 500 saw this year's gains disappear on dismal earnings forecasts, while the Nasdaq Composite plunged 4.43 percent.
Nissan conducted uncertified vehicle checks as recently as last week even after revealing the widespread misconduct at its domestic factories, two sources with direct knowledge of the matter said on Wednesday.