HSBC downgrades Indian shares to 'underweight'

Cites recent rally and downside risks to growth

HSBC downgraded Indian shares to "underweight" from "neutral", citing the recent rally and downside risks to growth.

The bank said that after the recent bounce, India looks relatively expensive and is most exposed to growth adjustments.

HSBC added that it expects GDP forecasts to decline and earnings growth forecasts to follow.