HSBC has upgraded its rating on Indian equities to "Neutral" from "Underweight," signaling a shift in sentiment toward the world's third-largest economy.
The brokerage cited easing crude oil prices as a key driver, noting that lower energy costs reduce earnings risks for domestic companies.
6% from current levels, reflecting the bank's improved outlook on the region's equity performance.
Additionally, the bank pointed to the return of foreign institutional flows as a supportive factor for the market's near-term trajectory.
In its latest note, HSBC raised its year-end 2026 target for the BSE Sensex index to 84,000, up from a previous target of 80,500.
This adjustment implies an upside of approximately 8.6% from current levels, reflecting the bank's improved outlook on the region's equity performance.
The move comes as Indian equity benchmarks have opened higher in recent sessions, supported by a broad rally across Asian markets and a sustained pullback in crude oil prices.