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Goldman Sachs, one of the world’s most famous investment banks, clearly said that India’s stock market has the potential to take a huge leap. Goldman Sachs said that the Nifty index is expected to cross 29000 only in 2026. It is clear from this that big names from all over the world are bullish about India’s stock market.
New Delhi. Global investment bank Goldman Sachs remains bullish on the Indian stock market and has upgraded the rating to ‘overweight’. Also, a target of 29,000 has been given for Nifty by the end of 2026, which is 14 percent above the current levels. In its latest report, the Global Investment Bank has predicted India’s growth to accelerate further, which will benefit from monetary and fiscal policies, interest from foreign investors and improvement in corporate earnings.
Goldman Sachs had downgraded in the year 2024
Earlier, Goldman Sachs had downgraded Indian equities in October 2024. The reason for this was high valuation and slowing down of earnings. According to the report, Indian equities have underperformed MSCI EM by 25 per cent over the past year due to a massive outflow of $30 billion from foreign investors’ portfolios, the biggest difference in 20 years.
Increase in India’s domestic demand
Goldman Sachs said recent market trends indicate a change in sentiment as valuations have eased and the risk appetite of foreign investors has improved. The report said that ‘we now believe that Indian equities will perform better in the coming year.’ According to Goldman Sachs, India’s domestic demand will see an increase in the coming two years. The reasons for this are reduction in interest rates, improvement in liquidity, slow fiscal consolidation and GST reforms.
Corporate earnings for September quarter better than expected
According to the global investment bank, corporate earnings for the September quarter were better than expected, leading to upgrades in select sectors. Goldman Sachs believes that the next phase of market growth will be led by companies in the financial, consumer durables, defence, technology, media and telecom and oil marketing sectors. The investment bank further said that low food inflation, strong agricultural cycle, reduction in GST rates and possible wage hike under the Eighth Pay Commission will together boost broader consumption and increase demand and profits in consumer-related industries.
