HSBC downgrades Indian stocks to "underweight"

Golden Ten Data reported on April 23 that analysts at HSBC stated in a report that although the valuations of Indian companies have retreated significantly from their peaks, they may remain elevated until the effects of profit expectation downgrades are fully reflected. The bank downgraded its rating on Indian stocks from "neutral" to "underweight," and expects the current average earnings expectation for 2026, which is at 16%, to be revised downwards. The analysts wrote: "Given India's dependence on imported energy and the potential knock-on effects on inflation and domestic demand, we are concerned about the sustainability of the current profit recovery."