Global bank HSBC has upgraded India’s stock market outlook to “Overweight.”

This change shows renewed optimism about Indian shares among foreign investors.

The bank believes attractive stock valuations will bring global funds back.

Government reforms and policies are also supporting the growth outlook.

It is one of the strongest positive calls India has received recently.

Fresh foreign money could improve liquidity and market stability.

Sectors like banking, infrastructure, and energy may see maximum benefit.

However, short-term risks due to global volatility cannot be ignored.

Analysts suggest focusing on fundamentally strong companies with good earnings.

The HSBC report has improved investor confidence for the coming months.