"We expect the Sensex to correct to 26,000 by 2016-end. "He (Rajan) definitely adds to the investor confidence and would like to see him continue for the second term. MUMBAI: Recent market rally may have resulted in upward outlook revision by brokerages, but HSBC feels Indian equities are overpriced and Sensex is in for a correction, which may slump to 26,000 by the end of 2016. But as for our call on India, it mainly depends on fundamental factors, including economic growth, earnings, valuations and investor holdings," Joshi said.Rajan's current term is set to end in September and speculations are rife about his continuation in the post. Morgan Stanley has a 'bull case target' of 30,000 by March 2017.The Sensex closed at 26,635 on Friday, after a low of 22,494 on February 29.On its contrary call, Joshi said HSBC had cut India to 'underweight' in May 2015 due to high expectations when everybody was gung-ho about the country.

Source: Economic Times June 12, 2016 07:40 UTC