HSBC downgrades Indian stocks to underweight over Middle East conflict
Business
HSBC just lowered its rating on Indian stocks to "underweight," after already moving from "overweight" to "neutral" last month.
The bank says the risk-reward balance isn't looking great right now, especially with the Middle East conflict making India's dependence on imported energy a bigger concern.
HSBC warns India recovery faces volatility
HSBC points out that global tensions and the Middle East conflict could slow down India's economic recovery.
It also mentions that even though valuations have dropped from their peaks, they might rise again as earnings cuts come through, so things could stay bumpy unless growth picks up soon.