1. It is heartening that HSBC has issued a Neutral to Positive review for the Indian stock market. However one has to keep in mind tha the real bad results are yet to be announced or come in days ahead which means that we may see a significant decline in earnings during the next fiscal year. However one can take the consolation from this factor that the negativity is already being reflected in the stock prices.

2. HSBC is optimistic as it sees that India is among the markets least exposed to global economic trends and thus they are overweight on India in their Asia Pacific portfolio.

3. However Morgan Stanley is not that optimistic and is negative even on Valuations aspect too. Morgan is of the view that year 2003 was the best time to invest in India as it was trading at a discount to emerging markets. However presently one will see that the Indian share market is still trading at a premium of 20% and 51% on earnings and book, respectively.