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HSBC downgrades India for the second time in a month, explains 'underweight' stanceHSBC also noted that while valuations have fallen materially from their peak, they will rise again as earnings cuts come through.By Hormaz Fatakia   April 23, 2026, 6:59:59 AM IST (Published)1 Min ReadBrokerage firm HSBC has downgraded Indian equities to "underweight", in its latest note on Thursday, April 23, less than a month after downgrading it to "neutral" from "overweight" on March 31 this year. The firm has cited a less-attractive "risk-reward" as its rationale behind the downgrade.

"The ongoing Middle East conflict has refocused attention on downside growth risks, given India’s significant reliance on imported energy. Growth has showed signs of improvement in the last two quarters, but we think the recovery from hereon will be delayed," HSBC wrote in its note.

The brokerage also noted that while valuations have fallen materially from their peak, they will rise again as earnings cuts come through. "Without the anticipated cyclical acceleration in growth, valuations are likely to remain a constraint," the note said further.

This is breaking news and will be updated with more details.Continue ReadingTagsBSE SensexIndian MarketsNifty 50Nifty Midcap 100Nifty Smallcap 100share market today