Goldman Sachs raises Indian shares to ‘overweight’ on growth, earnings momentum
Also Read: China's spending on green energy is causing a global glut The Wall Street brokerage expects India's real economic growth to be 6.5% in 2023 and 6.3% in 2024 - the highest among large economies in the region, but slightly below the Indian central bank's target of 6.5% for fiscal 2024. The benchmark Nifty 50 jumped about 31% between March 2021 and October 2023, a period during which domestic investors remained net buyers each month, helping tide over sustained sales by foreign investors.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) While the domestic participation was a healthy sign, said Goldman, it also noted the market's surge has pushed valuations to an elevated 20 times the next 12 month's expected earnings. Still, that valuation had some support after earnings growth of 17% in 2023, the brokerage said.
Also Read: Dubai restarts privatizations after a year with Taxi IPO Goldman also raised Thailand to "overweight", while lowering Hong Kong-listed China shares to "marketweight". The brokerage said concerns over China's economy could lead to countries shifting their supply chains, which could benefit India.
The Nifty 50 has gained roughly 7% in 2023 so far, compared to a 3.75% drop in the MSCI Asia ex-Japan index. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.Milestone Alert!
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