HSBC said that although domestic equity valuations have corrected from their peaks, they may appear expensive again as earnings downgrades filter through. (Representational image)
| Photo Credit: Getty Images/iStockphoto
HSBC downgraded Indian equities to “underweight” from “neutral” – its second cut in less than a month – as it expects surging energy prices triggered by the Middle East war to threaten the durability of the country’s earnings recovery. Brent crude is up 42% since the war started in late February and is currently trading above $100 a barrel, raising inflation and growth risks for the world’s third-largest oil importer.
“India now looks less attractive than North East Asian peers in the current macro setting,” HSBC said in a note on Thursday, with the benchmark Nifty 50 and Sensex falling 6.7% and 7.9% so far this year – among the worst performing markets globally.
Published – April 23, 2026 10:07 pm IST
