New Delhi: Indian equities now look attractive on a regional basis, said HSBC Global Investment Research on Wednesday, upgrading the domestic market to overweight from neutral. 

It said that US tariffs will have little impact on the profits of most listed companies.

Although foreign funds have withdrawn significant amounts from India in the last 12 months, a period in which the market has seriously underperformed, local investors have remained resilient, according to the report.

“While earnings growth expectations can fall a little further, valuations are no longer a concern, as the government policy is becoming a positive factor for equities, and most foreign funds are lightly positioned,” the global investment research firm said.

Foreign investors remained net sellers in Asia this year, which is typically unfavourable for regional stock markets.

Yet the market is up by an average of 20 per cent due to cash inflow from local retail investors. However, after a strong run in Chinese equities, especially in Hong Kong, further momentum is uncertain.

“Valuations are elevated, but not excessive. However, with retail investors sitting on $22 trillion in cash, some of which is gradually being re-allocated to stocks, we expect Chinese equities to grind slowly higher,” HSBC stated.

In Japan, Korea, and Taiwan, investors are interested in playing AI through these markets, especially in Korea and Taiwan, which are now very crowded trades.

Valuations have run up and in Japan, the weaker Yen has also supported equities.

Corporate governance is a positive long-term theme in Japan and Korea, but it won’t carry markets on its own. After the recent run-up in equities, we downgraded Korea to underweight in mid-August.

“Meanwhile, ASEAN’s investor confidence is low. Politics dominates the headlines in Thailand and Indonesia; for the latter, fiscal prudence is on the radar screen after a cabinet reshuffle,” the investment research firm said.

New Delhi: Lakshmi Subbaraj, Director of Sales at JSW MG Motor India, welcomed the New GST Reform 2025, noting that the company has witnessed a significant 90 per cent surge in bookings and retail sales during this year’s Navratri compared to the same festival period in the past two years.

“Many customers were waiting in anticipation ahead of September 21. The first day of Navratri saw a 90 per cent jump in both retail and bookings compared to two years ago,” Subbaraj said without sharing the numbers.

Shailesh Chandra, President, SIAM and MD, Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, said, “The start to this festive season has been extremely encouraging. The recent GST reduction and special festive offers have sparked an extraordinary wave of consumer interest and enthusiasm. In just the first two days, auto dealerships nationwide are witnessing unprecedented walk-ins, a surge in enquiries, and record deliveries across most segments.”

“This remarkable momentum echoes the Hon’ble Prime Minister’s recent call to celebrate the festive season as ‘Bachat Utsav’ by purchasing products manufactured in India and emphasising that India’s prosperity will gain its strength from the Swadeshi mantra,” Chandra added.

Chandra further added that it is heartening to see families choosing this auspicious period to bring home new vehicles.

“Given the exceptional demand, customers considering a new vehicle should book early to ensure timely delivery. We are hopeful that this celebratory momentum will continue, making this festive season one of the most memorable for the industry and consumers alike,” he added.

The festive season began on a record-breaking note for the Indian automobile sector as Tata Motors and pre-owned car company CARS24 reported exceptional sales and customer activity on the first day of Navratri. The strong numbers came on the back of the recent GST 2.0 rate cuts, which have boosted consumer sentiment and reduced automobile ownership costs.

Tata Motors announced that it recorded 10,000 deliveries on Day 1 of Navratri, marking a historic achievement for the company. Along with the deliveries, Tata Motors also received 25,000+ enquiries on the same day, underscoring the strong demand and enthusiasm from buyers.

CARS24, India’s leading autotech platform, reported a 400 per cent jump in car deliveries by 2:00 pm on Day 1 of Navratri compared to daily averages. The company also recorded over 5,000 inspections in a single day, the highest in the last four years.

Meanwhile, Mahindra & Mahindra is expected to release its sales numbers on October 1, adding to the festive season performance picture for the automobile sector.