New Delhi, Sep 24
Indian equities now look attractive on a regional basis, said HSBC Global Investment Research on Wednesday, upgrading the domestic market to overweight from neutral.
It said that US tariffs will have little impact on the profits of most listed companies.
Although foreign funds have withdrawn significant amounts from India in the last 12 months, a period in which the market has seriously underperformed, local investors have remained resilient, according to the report.
"While earnings growth expectations can fall a little further, valuations are no longer a concern, as the government policy is becoming a positive factor for equities, and most foreign funds are lightly positioned," the global investment research firm said.