India Offers Refuge For Investors Amid Global Jitters, Foreign Inflows To Persist: HSBC

New Delhi: Indian inventory markets be offering a safe haven for buyers amid jitters about world macro uncertainty as home insurance policies stay beneficial, HSBC Global Investment Research mentioned on Wednesday. 

Sentiment has progressed considerably, and the Indian markets are smartly positioned amid world uncertainty and industry tensions.

“As per our proprietary positioning data, Asia and global emerging market (GEM) funds have started to rebuild positions in India (that is, cut their underweights), but global investors are still cautious. A weaker dollar and softer inflation suggest the foreign inflows can persist in the coming months,” the HSBC record famous.

The Central govt and the central financial institution are each offering coverage strengthen. Government capex surged to a document prime in Q1 2025, whilst the Reserve Bank of India (RBI) has followed a extra pro-growth stance than expected.

This is clear from the new larger-than-expected cuts within the benchmark fee (50bps) and money reserve ratio (100bps). This must bode smartly for home progress. Stable inflows from home buyers supply any other key strengthen to equities, in keeping with the record.

Earnings progress in Q1 got here as a marvel. Industrials, healthcare and telecom reported robust progress. Consumer discretionary noticed EPS develop 14 in keeping with cent at the again of sturdy numbers in retail and products and services.

“Despite the beat in Q1, we believe a sustained recovery in earnings growth is still a few quarters away,” the record famous.

Indian equities rebounded significantly previously few weeks at the again of decrease home bond yields, now all the way down to a 3-year low. Lower native bond yields are very supportive of native equities.

“In this environment, we prefer stocks that we believe offer good growth, preferably for structural or idiosyncratic reasons,” the HSBC record mentioned, including that they’re “neutral on India from the Asian perspective with the 2025-end index target of 82,240 for the Sensex”.