neutral
Recently
HSBC flags Indian equities as hedge to global AI froth and prefers INR debt and FX carry
HSBC sees India as a partial hedge to global AI froth, backing equities alongside INR debt and carry trades.
HSBC strategists argued Indian equities can hedge against over-extended global AI trades, citing relatively broad earnings drivers and resilient domestic demand.
The house also sees value in INR fixed income and FX carry as U.S. rates eventually normalise. The view follows October’s strong foreign inflows into financials and oil-gas counters and improving earnings breadth. Risks include global growth shocks and valuation sensitivity in smaller caps.
Allocation tactically favours large-cap financials and quality cyclicals.