Overview

• HSBC raised its India view from neutral to overweight and set a Sensex target of 94,000 for end-2026, implying roughly a 13% upside from current levels.
• The call follows a year of heavy foreign outflows and underperformance, with HSBC noting light foreign positioning and resilient domestic investor support.
• Policy shifts such as income-tax relief, a GST overhaul and easier monetary settings are cited as tailwinds for consumption and earnings, with valuations no longer seen as a constraint.
• HSBC warns that crowded AI-linked trades in Korea and Taiwan look vulnerable, contrasts India as Asia’s “quiet corner,” and expects limited earnings impact on Indian listings from US tariffs.
• The bank highlights that Asian equities are up about 20% in 2025 despite net foreign selling, while India’s indices have lagged and the rupee weakened during Wednesday’s session.