Why Does Goldman Sachs Expect Nifty To Touch 27,000 In The Next 12 Months?
Goldman Sachs, a leading global investment bank with a strong research footprint in India, has been closely tracking domestic equity markets. Sunil Koul, Managing Director and Asia Pacific Equity Strategist at Goldman Sachs, recently shared insights on CNBC-TV18, outlining the firm’s bullish outlook on Indian equities. According to Koul, India’s earnings momentum remains on track, supported by GST-led consumption benefits and robust performance in financials and consumer-facing sectors. While infrastructure and tariff-related headwinds persist, Goldman Sachs continues to see India as a key overweight market within the emerging economies basket.
Nifty Target And Earnings Outlook
Koul noted that Indian corporates are on track to achieve an 11% earnings growth in 2025. This projection is supported by resilient domestic consumption and a strong financial system. The target implies that India’s equity market still offers meaningful upside over the medium term, even after its recent rally.
Role Of GST Rate Cuts In Driving Growth
While this boost is welcome, Goldman Sachs has not revised its earnings estimates higher, as the benefit from GST cuts could be offset by slower infrastructure growth and potential tariff-related challenges. The firm believes that net earnings momentum remains intact, but investors should temper expectations for extraordinary gains.
Sectoral Preferences: Financials And Consumption
Banks and NBFCs continue to benefit from strong credit growth and improving asset quality. Consumer companies, particularly in FMCG and discretionary categories, stand to gain from rising rural and urban demand. These segments provide both growth visibility and defensive strength, making them a preferred play for investors in the current market cycle.
Risks To The Outlook
While India remains one of the fastest-growing economies, any sustained pressure on infrastructure growth or unexpected regulatory changes could limit upside potential. Nonetheless, Goldman Sachs believes the structural story of India’s consumption-driven economy remains intact.
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Macroeconomic Context Supporting India
The broader macro environment continues to support India’s equity story. Even though global headwinds may cause temporary corrections, the long-term opportunity remains robust. This explains why Goldman Sachs maintains India as an overweight within its emerging markets portfolio.
Investor Takeaway
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
