Goldman Sachs ups Nifty target: Global brokerage Goldman Sachs has upgraded the target for the 50-share index, Nifty, to 21,800 by December 2024. This is a 10.7 per cent rise from the previous close. The rationale behind the increase in the target is the robust earnings growth witnessed by India Inc. in Q2 and better valuations. Earlier, the target was pegged at 20,700 up until June 2024.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Meanwhile, a few days ago, another global brokerage, Morgan Stanley, set a target of 74,000 for BSE Sensex by the end of 2024.

Goldman Sachs has iterated that stocks' valuations have become relatively cheaper after the sell-off amid continued FII selling. Further, it pointed out that most sectors are trading at a 15 per cent discount to their peak multiples. Goldman Sachs sees corporate profitability to register 15 per cent growth in FY24, while the same is seen to be 14 per cent in FY25.

Going ahead, the trajectory of Indian equities will depend on several factors, including key interest rates in the US, dollar index value, the geopolitical situation, and elections in the home market. For the next six months, the brokerage has a conservative view; nevertheless, it sees a promising future for Indian equities post-Lok Sabha elections.

Foreign portfolio investors' exposure to Indian equities is very low, and it will further be impacted given the valuations at which stocks are trading, noted the brokerage.

It remains bullish on sectors such as banks, auto, cement, industrial, and utility. HDFC Bank, Kotak Bank, ICICI Bank, Godrej Consumer, Dabur, Pidilite, and Marico have been included in its top picks.

Earlier, the brokerage maintained an overweight stance on Indian equities, given the better fundamentals and economic growth. The brokerage estimated Indian markets to log the best growth in the Asia-Pacific region.