Underweight on India despite 10% correction since May: HSBC

Jitendra Sriram, HSBC said despite the recent correction, Indian market valuations remained above their long-term average.

Adding to that, MSCI India traded at 70 percent premium to MSCI EM index and 65 percent premium to MSCI Asia ex-Japan. "Unless Indian companies' profitability improves significantly we don't see any reason to justify such a high multiple," Sriram said.

Despite the market, in dollar terms, correcting nearly 10 percent since May, he remains underweight on India.