Notwithstanding geopolitical turbulence and trade tariff war, HSBC Global Investment Research expects bellwether Senex to hit 96,000 points by the end of next year on the back of government-initiated reforms playing out.

Though foreign funds have withdrawn significant amounts from India in the last 12 months, a period in which the market has seriously underperformed, local investors have remained resilient, said the report.

While earnings growth expectations can fall a little further, valuations are no longer a concern, government policy is becoming a positive factor for equities and most foreign funds are lightly positioned, it said.

“We think Indian equities now look attractive on a regional basis and upgrade the market to overweight (from neutral). As in China, US tariffs will have l

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