Goldman Sachs Upgrades Indian Equities: A Bullish Outlook

Goldman Sachs has upgraded Indian equities to 'overweight', anticipating a 14% rise in the NSE's Nifty benchmark by the end of 2026. The update comes after underperformance in 2025, citing factors like growth-supportive policies and foreign investor selloff as reasons for a bullish outlook.

In a significant shift, Goldman Sachs has upgraded its outlook on Indian equities to 'overweight', projecting a brighter future for investors. The American brokerage expects the NSE's Nifty benchmark to hit 29,000 points, marking a 14% increase by the end of 2026.

The finance giant cited the previous year's underperformance, where despite a strong 30% rally in emerging markets, Indian equities only managed a 'modest' 3% rise. This was due to peak valuations and cyclical challenges.

Goldman Sachs noted the role of growth-supportive policies, revamped investor sentiment, and significant foreign sell-offs as contributing factors for this strategic upgrade. The brokerage favors financial, consumer, and oil marketing stocks, as well as the defense sector, for 2026.

(With inputs from agencies.)