3 weeks ago
HSBC Report: Indian Equities Attractive Over Longer Term
A big money company in India called HSBC Mutual Fund wrote a report about the stock market.
They said India's stocks are a good place to put money for a long time.
This is because companies are making good profits and building new things.
The report also said that trade deals with Europe and the US could help India sell more things to other countries.
Last month, the stock market in India went up by 2.2 per cent.
Some types of companies, like computer, housing and car companies, did really well.
People from other countries put $2.5 billion into Indian stocks, and people inside India put in even more.
The report also talked about the weather, saying there was less rain than usual.
The central bank kept interest rates the same, which helps keep prices stable.
Overall, the report thinks India's money future looks pretty good.
HSBC Mutual Fund says Indian equities remain constructive over the longer term, supported by corporate earnings recovery, private capex and potential trade deals.
Indian equities ended July with a 2.2 per cent gain, with IT, real estate and automobiles among the best-performing sectors.
India recorded $2.5 billion in FII inflows in July, while DII inflows remained positive at $3.7 billion.
Cumulative rainfall recovered from 40 per cent below the long-period average at end-June to 12 per cent below at end-July 2026, with IMD forecasting a below-normal monsoon for August.
RBI maintained the repo rate at 5.25 per cent with a neutral stance, while GDP growth was revised marginally higher to 6.7 per cent and inflation lower to 5.0 per cent for FY27.
- Who
- HSBC Mutual Fund
- What
- Published a report stating Indian equities remain attractive over the longer term amid strong corporate earnings, private capex and potential trade deals
- Where
- India (New Delhi)
- When
- Report released on a Monday, covering July 2026 market data
- Why
- Supported by corporate earnings recovery, private capex, government infrastructure spending and potential trade deals with the EU and US
Optimistic Longer-Term Outlook
Near-Term Caution and Risks
Market Outlook
Optimistic Longer-Term Outlook
Indian equities remain constructive/attractive over the longer term with Nifty valuations in-line with the 10-year average and improving near-term outlook.
Near-Term Caution and Risks
Near-term outlook depends on no re-escalation of geo-political conflicts, and the report remains watchful due to a below-normal monsoon forecast for August.
Rainfall and Its Impact
Optimistic Longer-Term Outlook
Cumulative rainfall has recovered significantly, from 40 per cent below the long-period average at end-June to 12 per cent below at end-July 2026.
Near-Term Caution and Risks
The IMD outlook of a below-normal monsoon in August keeps the firm watchful for further cues, which could impact inflation and rural demand.
Key facts
- Report Publisher
- HSBC Mutual Fund
- July Equity Market Gain
- 2.2 per cent
- FII Inflows (July)
- $2.5 billion
- DII Inflows (July)
- $3.7 billion
- RBI Repo Rate
- 5.25 per cent (neutral stance)
- FY27 GDP Growth Forecast
- 6.7 per cent
- FY27 Inflation Forecast
- 5.0 per cent
- Cumulative Rainfall (End-July 2026)
- 12 per cent below long-period average
Quotes
HSBC Mutual Fund
HSBC Mutual Fund's research report
“"Nifty valuations are now in-line with the 10-year average. Near‑term outlook is now also improving assuming no re‑escalation of geo‑political conflicts."”
thehansindia.com
thehansindia.com
Sources
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