look news india
Mumbai: Financial services company HSBC has downgraded Indian equities to neutral from overweight and reduced its Sensex target to 85,990 in 2025 from earlier 90,520.
The HSBC report indicated that optimism about market performance is waning amid concerns about high valuations and sluggish economic growth.
HSBC’s full-year target suggests a gain of just over 10 per cent in the Sensex from the index’s high of around 78,000 in the first week of January.
The downgrade is necessary given India’s high income multiplier. The report said that we expect market returns to remain flat in 2025, while earnings estimates are changing according to fixed income.
Indian stocks have seen a recent decline after rising over the past few years. The FTSE India index has fallen 12 per cent in dollar terms since peaking in September 2024.
The index has witnessed a decline due to adverse global factors and slowdown in domestic growth. Despite India’s relative resilience to global uncertainty, high valuations and timing challenges have hindered a potential short-term recovery. The report also said India’s growing share in global trade and record foreign exchange reserves provide it with stability against currency volatility.
Let us tell you here that various global rating agencies and the government have reduced the country’s economic growth rate estimates for the current financial year, which indicates the overall economic condition of the country.