Overview

• HSBC moved Indian equities from Neutral to Overweight, keeping a 2025‑end Sensex target of 85,130 and projecting 94,000 by 2026‑end.
• The bank cites income tax cuts, a recent GST overhaul, softer inflation and earlier RBI easing as supports for consumption and earnings recovery.
• Foreign portfolio investors have been heavy net sellers in 2025 (about ₹1.42 lakh crore year‑to‑date), leaving positioning light and offering scope for re‑entry, according to HSBC.
• HSBC views tariff risks as more psychological than fundamental, noting less than 4% of BSE500 sales come from the US, with limited direct profit impact.
• Near term, market stress persists as the Sensex closed near 81,160 and the Nifty slipped below 25,000 after a five‑session slide, with analysts flagging resistance near 25,000 and continued FII outflows.