HSBC raised its rating on Indian equities to Neutral, citing fading oil-price
risks to corporate earnings and resilient domestic consumption, according to a
Thursday report led by strategist Herald van der Linde. The bank, which
downgraded India in April over Iran-related inflation risks, is among the first
major global banks to lift its stance as those concerns have eased. HSBC raised
its year-end BSE Sensex target to 84,000 from 80,500, implying about 8.8% upside
to Wednesday’s close, and flagged the move as coinciding with global funds
shifting from record selling earlier this year to net buying of Indian stocks.
