HSBC upgrades Indian equities to 'neutral' on easing oil prices, return of foreign flows

HSBC upgraded Indian equities to 'Neutral' from 'Underweight' and raised its 2026-end Sensex target to 84,000 from 80,500, implying an 8.6 percent upside from current levels. The brokerage cited easing oil prices, with Brent crude down 33 percent from its April peak of $126.41, and the return of foreign portfolio flows as key triggers. Foreign investors have bought Indian shares worth $1.6 billion so far in July, turning net buyers after four months of heavy selling, though they remain net sellers of $27.7 billion in 2026. HSBC said it prefers private banks, consumer discretionary, real estate, commodities, and select industrials, while cautioning that sustainability of foreign inflows remains a key concern.