Global brokerages are turning more positive on Indian equities as the market rebounds and foreign investors return with record inflows. HSBC upgrades Indian stocks to “overweight” from “neutral,” pointing to resilient corporate earnings, improving growth prospects and more reasonable valuations after a prolonged correction. Bloomberg and other outlets also describe this shift as sentiment resetting toward Indian equities amid easing concerns tied to stretched AI valuations.
Citi is also portrayed as bullish, with a cited target for the Nifty 50 of 28,000 by end-December 2027, supported by a strong earnings outlook, lower oil prices and expectations that global AI spending may slow. Jefferies is presented as raising India’s relative weight in its Asia-Pacific ex-Japan portfolio. Sector preferences highlighted across reports include banks/financials, industrials and consumer discretionary, alongside selective interest in insurers and hospitals.
Outlets add context with risks and macro factors: multiple reports mention the importance of credit growth and policy support, while HSBC’s caution includes sensitivity to crude oil and the possibility of El Niño affecting growth, demand and inflation. Coverage also notes that only a minority of global emerging-market funds currently hold overweight positions in India, implying potential for further allocation.
