Goldman Sachs expects Nifty50 to top 23,500 in 2024; here is why

Goldman Sachs, a global investment banking, securities, and investment management firm, is bullish on the Indian stock market and has raised its target on Nifty50 for the calendar year 2024. The investment bank sees Nifty50 touching the 23,500 mark this year.

As per Zee Business research, the revision in the target price comes just two months after it set a target of 21,800. The new price target implies an upside potential of approximately more than 9 per cent for the index from the current levels. In trade on Wednesday, as of 10:56 a.m., Nifty50 was trading at 21,523.7.

Why is Goldman Sachs bullish?

The investment bank sees the Indian stock market benefiting from the rate cuts by the Reserve Bank of India (RBI) from Q2 FY25. On the international front, the domestic market will get an edge with five possible interest rate cuts by the US in 2024.

Further, Goldman Sachs believes that India's gross domestic product (GDP) growth may remain strong at 6.2 per cent. Additionally, continued strong inflows in the public capital market will also give indices a boost.

The excellent earnings momentum of the companies will also benefit Nifty 50, and the possibility of a 15 per cent growth in MSCI India profit is also a reason for the investment banks' bullish stance.

Along similar lines, Zee Business Managing Editor Anil Singhvi also believes that the Nifty50 can hit the 24,000 mark by the end of 2024 on the back of positive global cues, an increase in investment by foreign institutional investors (FIIs), and if the Bharatiya Janta Party (BJP) wins with 300 seats in the Lok Sabha election.

Also read: Market Outlook 2024: Will it be better than 2023? Here's what leading experts say

However, the market guru also warned of profit booking six months before or after the election.

Similarly, Sharekhan also believes that Indian markets look promising. However, it has highlighted that valuations are not cheap anymore.

"New Year 2024 appears promising, with the markets hitting a new high and economic growth being healthy, especially in the context of a slowdown globally," the report read.

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