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New Delhi, 23 October (Hindustan Reporter). Investment firm Goldman Sachs has reduced the rating of Indian equities to neutral. Before this, the rating of Indian shares was in overweight category. Goldman Sachs has said that in view of the possibility of time correction in the next 3 to 6 months, it has been decided to reduce the rating of Indian stocks from overweight to neutral.
The investment firm believes that there is a possibility of price correction due to domestic inflows and high valuations. Along with this, due to global conditions not being very favourable, the possibility of growth in the Indian market will also be limited. Goldman Sachs has said that the structural attractiveness of Indian stocks remains intact, but it looks cheap on the economic growth and profit front. Most companies are facing the challenges of continuously decreasing profit margins, declining product demand and high base, due to which the earnings growth for the quarter ending in September may reach the lowest level since the Corona period. Investment firm Goldman Sachs has also expressed apprehension that challenges related to earnings growth may increase further in the future.
Citing its various parameters, Goldman Sachs has set the target for Nifty for the next 12 months at 27,000 points, which is less than Goldman Sachs' previous estimate of 27,500. Along with this, this investment firm expects Nifty to reach 24,500 in the short term and increase to 25,500 in the next 6 months.
Goldman Sachs has maintained its overweight rating on telecom, automobile and insurance as before, while upgrading the realty sector to overweight category. On the other hand, Financial, Industrial, Chemical and Cement sectors have been downgraded by this investment firm.
