Goldman Sachs has adopted a neutral stance on Indian equities in the near term, citing a range-bound market outlook driven by weak earnings growth and high valuations. The brokerage has set a Nifty target of 24,000 over the next three months and expects the index to reach 27,000 by the end of 2025, supported by underlying earnings growth of 13%-16%.
Key highlights:
- Sector preferences: Goldman Sachs has upgraded exporters like IT to “Overweight” and pharma to “Marketweight,” citing stable demand, weaker INR benefits, and defensive characteristics.
- Focus on quality: The brokerage emphasizes stocks with strong balance sheets, high earnings visibility, positive EPS revisions, and low beta characteristics.
- Preferred themes: Medium-term investment themes include housing, agriculture, defense, tourism, and affluent India.
- Market outlook: While the market is expected to remain subdued in the short term, a back-loaded recovery is anticipated as growth picks up.
Goldman Sachs also recommends a tactical focus on quality growth, earnings visibility, and targeted alpha themes for portfolio positioning.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
