Overview

• HSBC lifted Indian equities from neutral to overweight and projected the Sensex at 94,000 by end‑2026, while keeping a 2025‑end level near 85,130.
• The upgrade cites valuations that are no longer a concern, policy support from income‑tax cuts and GST reforms, softer inflation, and resilient domestic investors.
• Near‑term sentiment remains weak as benchmarks logged a five‑day slide with Nifty closing below 25,000, while FPIs sold Rs 4,995.42 crore on Sep 25 and DIIs bought Rs 5,103.01 crore.
• HSBC downplays direct earnings risk from US trade measures, noting less than about 4% of BSE‑500 sales come from goods exported to the US, though tariff and visa headlines are pressuring risk appetite.
• Preferred areas include autos, consumer staples, and large banks, with stock picks such as HDFC Bank, Infosys, NTPC, Trent, Marico, M&M, UltraTech Cement, Adani Ports, Divi’s Labs, Phoenix Mills, and ICICI Lombard; the bank cautions against crowded AI trades in Korea and Taiwan.