Goldman Sachs revises Nifty target to 23,500 for 2024, here's why
TCS Q3 Results Preview: Expect muted earnings growth; deal wins, outlook on near-term demand to be in focus In the last two months, there has been a positive transformation in the global macroeconomic landscape. Anticipations include robust growth in the US, earlier-than-expected interest rate reductions in both the US and Asian regions, and a projected mild depreciation of the dollar throughout the year.
“While markets have partly priced this, a better growth/rate mix recently led us to raise our Nifty index target, incorporating a higher ‘target’ valuation multiple," the brokerage firm said in its report. following the initial Federal Reserve rate cut, although returns tend to diminish thereafter.
Despite this trend, the investment bank notes that India's equity market is less responsive to US rates and Fed cuts compared to other cyclical Asian markets. Additionally, the relatively shallow rate-cutting cycle in India suggests a constrained impact on the domestic equity market.
Also read: Tata Motors shares hit 52-week high after JLR posts 27% yoy increase in sales The investment bank highlights that some of the positive macroeconomic factors have already been factored into the Nifty50's 15% surge from the lows observed in October 2023. “Regarding rates, Goldman Sachs' US economists now anticipate a swifter easing in the Fed funds rate, projecting five additional rate cuts in 2024, beginning in March, compared to the earlier expectation of only one cut in Q4 2024," the report said.
The company's economists have revised their projections for interest rate reductions in certain markets. They anticipate that the Reserve Bank of India will initiate rate cuts in the third quarter of the calendar year 2024, as opposed to
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