HSBC has downgraded its India outlook from 'overweight' to 'neutral,' with a BSE Sensex target of ₹85,990 for 2025. The move is mainly prompted by worries over falling corporate profits and elevated market valuations.

HSBC downgraded Indian equities rating to "neutral" from "overweight," citing softening corporate profits, elevated valuations, and muted market returns for 2025. It cut FY25 Nifty 50 earnings growth forecasts from 15% to 5% and reduced the Sensex 2025 target by 5,

HSBC cut its rating on Indian equities to "neutral" on Thursday, joining a growing list of global brokerages that have tempered their bets on Asia's third-largest economy on slowing growth and elevated valuations.

As India faces slowing economic growth, HSBC Global Research has downgraded the Indian stock market outlook from 'overweight' to 'neutral'. In a report, the global financial services firm said profits at India Inc appeared to have softened while valuations are elevated.

HSBC has significantly reduced its FY25 earnings growth forecast for the Nifty 50 from 15 per cent to just 5 per cent. It has cut Sensex by more than 5000 points for the year.

With muted returns in 2025 on the back of slow earnings and markets recalibrating their earnings expectations, HSBC sees Sensex at 95,990 by the year's end.

HSBC has downgraded Indian equity stocks to "neutral" from "overweight" on December 9. "The cyclical growth slowdown and elevated valuations have capped the upside in the near term... (and) we see muted market returns in 2025," HSBC said in its note.

Global brokerage firm HSBC has downgraded Indian equity markets to a " neutral " stance from its earlier " overweight " position, citing slowing growth and elevated valuations. The firm has also revised its 2025-end Sensex target, lowering it by 5,000 points to 85,990.

HSBC downgrades Indian stocks to 'neutral' due to slower growth, high valuations, and weak demand. The Sensex and Nifty indices have pulled back, while the banking sector faces challenges. Despite this,

HSBC, however, maintains a positive outlook on select Asian markets, particularly China, Hong Kong, and South Korea. The brokerage has an 'overweight' rating on China. Hong Kong has been upgraded from 'Neutral' to 'Overweight,’ while South Korea has been raised from 'Underweight' to 'Neutral.'

The Indian economy is facing slow economic growth and HSBC Global Research has downgraded the Indian stock market outlook from "overweight" to "neutral".The global financial services firm in a report said profits at India Inc have softened while valuations are evaluated.