HSBC upgrades India to 'overweight,' sees Sensex at 94,000
HSBC has upgraded India's stock market from "neutral" to "overweight," aiming for the Sensex to hit 94,000 in the next year—a possible 13% jump from where it closed on Tuesday, September 23.
This marks a turnaround from their January downgrade, as they now see better growth prospects and fewer worries about high prices.
Local investor support and government policies boost market appeal
While South Korea and Taiwan's markets soared in 2024, India's gains were modest—just 4.5%.
But HSBC points out that steady support from Indian investors and improved government policies are making the market more attractive again.
Even with some recent slowdowns and US tariffs in play, HSBC expects little impact on the profits of listed Indian companies and sees improving conditions for equities.
Valuation concerns ease, US tariff impact expected to be minor
Easing valuation concerns and friendlier government moves are big reasons behind the upgrade.
HSBC also believes any impact from US tariffs will be minor for Indian companies—making India stand out as a solid bet among Asian markets right now.