HSBC downgrades Indian shares to "underweight" from
"neutral", citing the recent rally and downside risks to growth.
The bank says that after the recent bounce, India looks relatively expensive and is most exposed to growth adjustments.
HSBC adds that it expects GDP forecasts to decline and earnings growth forecasts to follow.
Stocks rallied sharply in early trades on the Indian bourses this morning, with the bulls storming the ring at the stroke of the opening bell, tracking strong global cues. Hopes of some reforms announcements from the government and expectations that the central bank's recent will moves will help stabilise the rupee are also aiding the surge.
Bank stocks are the most impressive gainers. Several stocks from automobile, capital goods, FMCG, power, PSU, realty and metal sectors are also up with strong gains. select oil and consumer durables stocks are up as well. Healthcare stocks are trading mixed, while information technology stocks are a bit weak.
The BSE benchmark Sensex, which soared to 20,086.43, gaining over 350 points in a flash, is currently up 256.90 points or 1.3% at 19,989.66. The Nifty index of the National Stock Exchange is up 71.65 points or 1.22% at 5922.25, off an early high of 5957.25.
The market, which rose sharply on some hectic buying in early trades this morning, has come off its high due to a bout of profit taking at some counters, but still remains fairly well placed in positive territory.
The rupee's strong start against the U.S. dollar and hopes of some reforms announcements from the government appear to have lifted sentiment to a significant extent.
The BSE benchmark Sensex, which vaulted to 20.086.43, is currently up 216.35 points or 1.1% at 19,949.11. The Nifty index of the National Stock Exchange is up 66.60 points or 1.14% at 5917.20, around 40 points off the day's high of 5957.25.
Bank stocks continue to hog the limeligth. Mirroring strong buying in that space, the BSE Bankex is now up 3.2%. Key stocks from FMCG, capital goods, automobile, PSU and power sectors are also trading notably higher.
The bank says that after the recent bounce, India looks relatively expensive and is most exposed to growth adjustments.
HSBC adds that it expects GDP forecasts to decline and earnings growth forecasts to follow.
Stocks rallied sharply in early trades on the Indian bourses this morning, with the bulls storming the ring at the stroke of the opening bell, tracking strong global cues. Hopes of some reforms announcements from the government and expectations that the central bank's recent will moves will help stabilise the rupee are also aiding the surge.
Bank stocks are the most impressive gainers. Several stocks from automobile, capital goods, FMCG, power, PSU, realty and metal sectors are also up with strong gains. select oil and consumer durables stocks are up as well. Healthcare stocks are trading mixed, while information technology stocks are a bit weak.
The BSE benchmark Sensex, which soared to 20,086.43, gaining over 350 points in a flash, is currently up 256.90 points or 1.3% at 19,989.66. The Nifty index of the National Stock Exchange is up 71.65 points or 1.22% at 5922.25, off an early high of 5957.25.
The market, which rose sharply on some hectic buying in early trades this morning, has come off its high due to a bout of profit taking at some counters, but still remains fairly well placed in positive territory.
The rupee's strong start against the U.S. dollar and hopes of some reforms announcements from the government appear to have lifted sentiment to a significant extent.
The BSE benchmark Sensex, which vaulted to 20.086.43, is currently up 216.35 points or 1.1% at 19,949.11. The Nifty index of the National Stock Exchange is up 66.60 points or 1.14% at 5917.20, around 40 points off the day's high of 5957.25.
Bank stocks continue to hog the limeligth. Mirroring strong buying in that space, the BSE Bankex is now up 3.2%. Key stocks from FMCG, capital goods, automobile, PSU and power sectors are also trading notably higher.
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