look news india
AHMEDABAD: Investment firm Goldman Sachs has now downgraded the Indian stock market rating to 'neutral' from 'overweight', dealing a blow to Dalal Street following the exit of foreign investors from the Indian stock market due to China's economic support packages. Is. Government and high valuation.
Goldman Sachs had said that 'time correction' will come in the Indian market in the next 3-6 months. Keeping this in mind this downgrade has been given. However, it is also expected that there will be no 'price correction' in the next 3-6 months due to high valuations and supported by domestic inflows, but the upside will be limited.
Companies are facing challenges of high base, falling demand and shrinking margins. According to Goldman Sachs, economic growth and profits are slowing even as the structural attractiveness of Indian stocks remains intact. Second quarter earnings growth may reach post-Covid low. Apart from this, profit growth is expected to decline to around 2 percent in the July-September period. This could be the slowest earnings growth of Nifty companies in the last 17 quarters.
Keeping these factors in mind, Goldman Sachs has set a 12-month target for Nifty at 27,000, which represents an upside of only 9 percent. Earlier the target price was Rs 27,500. Nifty index will fall to 24,500 in the short term and then rise to 25,500 in the next 6 months.
In terms of sector outlook, Goldman has maintained overweight ratings on automobile, telecom and insurance, while realty and internet sectors have also been upgraded to 'overweight'. On the other hand, sectors like industrial, cement, chemicals and financials have been downgraded.