HSBC sees Sensex at 90,520 by end of 2025, a potential upside of 15%

The note says that while India's growth is stabilizing at a lower level, though still favourable, the earnings per share (EPS) growth is concentrated in the small and mid-cap space.

Moneycontrol News

November 19, 2024 / 09:05 IST

Despite the slowdown, India is poised to stay as one of the fastest-growing economies in 2025, said HSBC.

26 Aug, 2025 12:21

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HSBC has come out with a India Strategy note, maintaining an Overweight with a Sensex target of 90,520 by the end of 2025, indicating at a potential upside of 15%.

The note says that while India's growth is stabilizing at a lower level, though still favourable, the earnings per share (EPS) growth is concentrated in the small and mid-cap space. These companies from the broader market universe are expected to see growth rates of around 30%, in contrast to the 12% growth anticipated for large-cap names. This trend highlights that the segment most accessible to foreign investors — the largecap pool — is witnessing a slower pace of growth.

Despite the slowdown, India is poised to stay as one of the fastest-growing economies in 2025, said HSBC. The HSBC note also unveiled the Asia Stock Ideas 2025 list, with only two Indian companies featured as part of it - Axis Bank and KIMS.

Soon after after General Elections in June, an HSBC note had maintain a mild 'Overweight' on Indian equities over 6-12 months, adding that the long-term fundamentals remain supportive. "Public capex, focus on infrastructure and support for hi-tech and new emerging manufacturing sectors is likely to continue," the June 2024 note had said.

HSBC in June had cited three key factors driving India's equity valuations, (1) strong domestic investor base – both institutional and retail, (2) light positioning of foreign investors and (3) strong GDP growth trajectory, which is expected to translate into earnings growth.