Scared of the AI bubble? Hedge your fears with D-St bets: HSBC

HSBC said India offers ahedge to those who feel uncomfortable with the ongoing global Artificial Intelligence (AI) rally. The country’s stocks are the biggest underweights in global emerging market portfolios now, and any additional money into the region would result in India being an outsized beneficiary, it said.


The bank is overweight on Indian equities in the Asia basket and has set a 2026 target of 94,000 on the Sensex.
“Concerns around elevated multiples have kept many investors on the sidelines, but we argue valuations now are not as much of a headwind as they were a year ago,” said HSBC’s analysts, including its head of Equity Asia Pacific Strategy, Herald van der Linde, in a client note. “In fact, we think India now offers value vs Chinese equities.” The bank said apotential reduction in US tariffs would likely be a big boost for India.