---
title: "HSBC Downgrades Indian Stocks Amid Concerns Over Earnings and Energy Dependence"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283758747.md"
description: "HSBC has downgraded Indian stocks from 'neutral' to 'underweight' due to concerns over earnings and energy dependence. The report predicts a 16% reduction in average earnings expectations for 2026, highlighting that valuations may remain high until the impact of these lowered expectations is fully realized. Analysts are worried about the sustainability of earnings recovery, particularly given India's reliance on imported energy and its potential effects on inflation and domestic demand."
datetime: "2026-04-23T03:20:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283758747.md)
  - [en](https://longbridge.com/en/news/283758747.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283758747.md)
---

# HSBC Downgrades Indian Stocks Amid Concerns Over Earnings and Energy Dependence

HSBC analysts have downgraded Indian stocks from 'neutral' to 'underweight,' according to a report released on April 23 by Jin10. Despite a significant correction from peak valuations, the analysts believe that Indian companies' valuations may remain elevated until the full impact of lowered earnings expectations is realized. The report forecasts a reduction in the current average earnings expectation of 16% for 2026. Analysts expressed concerns about the sustainability of the current earnings recovery, citing India's reliance on imported energy and the potential ripple effects on inflation and domestic demand.

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