HSBC cuts India ratings to underweight, to re-enter market after another 10% fall

NEW DELHI: HSBC has cut India ratings to underweight on slowing earnings growth, and said the investment bank would re-enter the markets if they fall another 10% from the current levels.

Speaking to ET Now, the global investment bank's Herald Van der Linde said that India remained one of the most over-owned markets in Asia.

Linde listed out delay in capex recovery as a reason for downgrading Indian to underweight.

The Sensex closed at 26,877.48, down 629.82 points on Tuesday as investors dumped Indian equities on worries that the government's decision to refer the key bills on land acquisition and the goods and services tax to select committee of Parliament will further delay their implementation.

Linde also highlighted the fact that there are limited prospects of the RBI cutting interest rates.