HSBC Downgrades Indian Equities to Underweight
HSBC has lowered its rating on Indian stocks due to surging energy costs and inflation risks. Analysts expect lower earnings growth as oil prices exceed $100.
Xurve View
Insights:
Xurve View
HSBC HOLDINGS PLC has downgraded the equity market in India to underweight from neutral, marking its second reduction in less than a month. The decision stems from concerns that surging energy prices, exacerbated by ongoing conflict in the Middle East, will undermine the country's corporate earnings recovery. Since the onset of hostilities in late February, Brent Crude Oil has surged by 42%, currently trading above $100 per barrel. This price spike poses significant inflation and growth risks for the world's third-largest oil importer.
