Overview

• Heralding a turn after a year of underperformance, HSBC says Indian valuations are no longer a key constraint as earnings expectations moderate.
• The brokerage sets an end-2026 Sensex target of 94,000, implying roughly 13% upside from current levels.
• HSBC advises reallocating from crowded North Asian trades, particularly AI-linked names in Korea and Taiwan, toward India.
• Despite substantial foreign outflows over the past 12 months, the note highlights resilient domestic investor support in India.
• In its broader Asia view, HSBC points to sizable Chinese retail cash and strong mainland inflows into H-shares, and it sees limited profit impact from US tariffs on most listed Chinese firms.