HSBC Sees Selective Growth Opportunities in India
HSBC Said Its Proprietary Data Showed Asia and Gem Funds are beginning to rebuild positions in India, gradually reviewing their underweight expenses. The firm noted that a weaker us dollar and easy inflation conditions could Further Support Foreign Portfolio Inflows into Indian Equites in the COMING MONTHS.
Despite Global Headwinds and Cautious Investor Sentimen, HSBC SAID India Remains Relatively Well-Positioned Due to Domestic Resilience. It set a 2025-end sensex target of 82,240, mainTaining a ‘Neutral’ Rating from an asian portfolio percetic.
“We are neutral on India from the asian percent,” HSBC said, “but we see it as a relative refuge in the current environment.”
Top Stock Picks: Godrej Consumer, UPL, GAIL, Ujjivan SFB, and HDFC Life
In a market where valuations appear elevated, HSBC Said It Prefeers Companies with Company-Specific Strengths that offer Good Growth Visibility. Among Its Top Five Picks:
Godrej Consumer Products Ltd (GCPL): HSBC Praised The Company’s Strong Innovation Pipeline and Market Share Gains in the Home Insecticides segment.
UPL: The brokerage expects upl to surprise positively on growth, margin recoverry, and debt reduction-factors that count drive a re-rating.
Gail: Despite underperformance so far in 2025, HSBC Sees Structural Benefits from the Rising Demand for Clean Energy. A Possible Gas Tariff Revision and Ongoing Pipeline Projects Cold Act as Catalysts.
Ujjivan Small Finance Bank and HDFC Life: Both are set to benefit from an Easing Interest Rate Environment. HSBC Said Policy Support from the Central Government and RBI Should Aid Domestic Financial Players, with Ujjivan and HDFC Life Well Positioned to Capitalise on Improved Liquidity.
Earnings Outlook: March Quarter Surprises, but full Recovery Remains Distant
On the earnings front, hsbc noted that March Quarter Surprised positively. Ftse India (Ex-Commodities) EPS Grew 10 Percent Year-On-Yaar, Up from Single-Digit Growth over the Previous Four Quarters. Industrials, Telecom, and Healthcare Sector Delivered Strong Performance, While Consumer Discretionary EPS ROSE 14 Percent due to Strength in Retail and Services.
However, FMCG Struggled With Soft Demand and Heightened Competition, and the Banking and It Sector Posted Modest Modest Growth of Just 5–6 percent yoyy.
Despite the positive Quarter, HSBC said the path to a full recovery remain uneven. Factset Consensus EPS Estimates for 2025 Have Alredy Been Revised Downward to 11 Percent, And Risks Remain Due to Weak Urban Consumption, Slugish Private Capex, Sluggish PRIVATE CAPEX, And Policy UNCERTAINTY In the USTAINTY US Affect it services experts.
“Rate cuts may also hurt banks’ margins,” HSBC Warned, Noting That Banks Form a Significant Weight in the Indian Equity Indices.
Overall, while HSBC MainTains a Neutral Outlook on Indian Equites, It Beliaves India Remains A Relatively Strong Investment Destination COMPARED to other emerging markets. With supported policy movies and ongoing foreign inflows, the count offers select options for investors. HSBC’s Latest Top Picks – Godrej Consumer, UPL, GAIL, Ujjivan Small Finance Bank, And HDFC Life –underscore its its preference for quality names with differentted Growth Potental in A Still-COUTIOUS Environment.
Disclaimer: The views and recommendations made about individual analysts or broking companies, and not of Mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.
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