Goldman Sachs sees Nifty climbing to 27,000 in 2025, upgrades IT to overweight
equity markets in 2025, with the Nifty 50 likely to reach 27,000, rebounding from its current 9.5% dip below the September 2024 peak due to FII outflows. The brokerage has elevated resilient export-oriented sectors like IT and pharma to overweight and market weight, respectively, benefiting from improving demand, a weaker rupee and defensive attributes.
Goldman Sachs said the expected rebound in the Nifty 50 index would be fueled by a combination of mid-teen earnings growth and strategic focus on export-oriented sectors like IT and pharma, which have been upgraded to reflect their favorable positioning in the current macroeconomic environment, benefiting from improving global demand, tailwinds from a weaker rupee, and defensive characteristics. The brokerage report highlights stable revenue visibility in these sectors, supported by structural demand trends and cost advantages.
The brokerage has turned bullish on exporters, citing tailwinds from a weaker rupee and steady global demand. Infotech has been upgraded to overweight (OW) on improving international revenue streams while pharma has been raised to market weight (MW) due to its defensive characteristics and margin stability. These adjustments underscore Goldman Sachs’ tactical pivot toward sectors with robust earnings visibility amidst a broader economic slowdown.
In the near term, the Nifty 50 index is expected to remain range-bound, with a modest 2% gain to 24,000 over the next three months, said Goldman Sachs. High starting valuations and weaker corporate
