Nifty Target 2026: Goldman Sachs has cut the Nifty 50 target for 2026 and also downgraded Indian equities. The brokerage has downgraded to 'Marketweight' from 'Overweight'.
Goldman Sachs has reduced its Nifty 12-month target to 25,900, significantly down from the previous target of 29,300.
This translates into a downside of 3,400 points or nearly 12 per cent from the previous target.
Goldman Sacha said that it has lowered the Nifty target due to worsening macro and slowing earnings growth.
It said that the Indian stock market is looking less attractive than other North Asian markets.
The brokerage has cut its earnings growth forecast for the Indian markets. It expects earnings to grow at 8 per cent and 13 per cent over the next two years, own from previous expectation of 16 per cent and 14 per cent.
Goldman Sacha said that it has lowered earnings growth due to three reasons:
1. Higher oil prices
2. Slower GDP growth
3. Weaker INR (Rupee)
Goldman Sachs' report on the Indian stock market has come amid the Middle East war, which involves three countries -- the US, Israel and Iran.
The brokerage has recommended investors to look for defensive sectors for investment. The brokerage said that it is Overweight on banks, staples, defence and upstream energy.
On banks, the brokerage said that it is Overweight as it sees NIM expansion as interest rates could remain higher and also banks have good asset quality. On the defensive, brokerage recommended investing in staples and telcos. The defence sector, it said, is strategically important for the government.
It has downgraded oil marketing companies (OMCs) like Indian Oil, BPCL and HPCL to Underweight from Overweight. The brokerage has also lowered NBFCs rating to Marketweight due to rising cost of funds.
