Overview
- Sensex and Nifty fell for a second straight week to 83,216 and 25,492, with sectoral weakness in IT and metals weighing on sentiment, according to multiple market wrap reports.
- HSBC reiterated a medium‑term bullish view with a Sensex target of 94,000 by December 2026, citing an earnings bottom, improved relative valuations versus China, and scope for renewed foreign inflows.
- HSBC flagged key risks including a delay in earnings recovery, continued diversion of global funds to AI‑themed stocks, and softer domestic equity appetite, noting India lacks an AI boom narrative.
- Goldman Sachs upgraded India to Overweight and set a Nifty target of 29,000 by end‑2026, pointing to policy support, an earnings rebound, and signs that cooled valuations could revive foreign interest.
- Near‑term direction will hinge on October CPI and WPI readings, ongoing Q2 results, foreign flow trends, Bihar election developments, and US factors such as the government shutdown and trade talks.