Sensex To Hit 94,000 By End-2026 On Strong Earnings, Valuation Support: HSBC

Global brokerage HSBC expects India’s benchmark BSE Sensex to rise about 10% by the end of 2026, setting a target of 94,000 for the 30-share index and noting that Indian equities currently offer better value than Chinese markets. This outlook comes even as Indian stocks have trailed other Asian and emerging market peers this year, pressured by softer corporate earnings, elevated valuations and heavy foreign selling.

Foreign portfolio investors have offloaded $16.8 billion worth of Indian equities so far in 2025, putting the market on course for a record year of outflows, though the selling has moderated since October as earnings improved. Despite the outflows, both the Nifty and Sensex are up about 10% year to date and were trading roughly 0.6%

below their September 2024 record highs on Thursday.

HSBC said India is regaining appeal as earnings show signs of recovery and valuations ease after a 14-month pause. Analysts led by Herald van der Linde wrote that earnings are expected to strengthen further, bank margins should expand in the coming quarters, and consumption-driven sectors—including autos—stand to benefit from GST reductions and lower interest rates.

The brokerage also believes India is well placed to attract renewed emerging market inflows as global investors look for growth opportunities across Asia beyond artificial intelligence. Fiscal and monetary support could help drive a pickup in growth in early 2026, HSBC added.

Alongside India, the firm remains overweight on mainland China, Hong Kong and Indonesia, while maintaining underweight positions on Taiwan, South Korea, Japan, Singapore and Thailand. HSBC had upgraded Indian equities to “overweight” from “neutral” in September, making it one of the first major global brokerages to turn bullish on Asia’s third-largest economy.