Leading US brokerage firm Goldman Sachs on Monday raised its forecasts for the Indian stock market. Goldman Sachs said increased buying in the Indian stock market could lead to a 14 per cent rise in the NSE Nifty 50 index of 50 shares and reach 29,000 points by the end of 2026. Goldman Sachs has made this forecast after the weak performance of the stock market this year. The brokerage firm said shares are up a “modest” 3 percent so far in 2025. It has been one of the strongest years for emerging markets, with gains of more than 30 percent.
The performance of the Indian market is much worse than other markets.
“This stock market performance is the weakest in the last two decades, driven by high initial valuations and weak cyclical growth and profit expectations,” Goldman Sachs said. The brokerage firm said it had lowered its forecast for India in October last year for the same reasons and now maintains an “overweight” stance on India. “As the year progressed and earnings declined, tariff-related barriers further weakened sentiment and led to a significant reduction in risk appetite by foreign institutional investors (FPIs). We now believe the Indian stock market will outperform in the year ahead,” Goldman Sachs said.
Foreign investors sold $30 billion
This forecast was bolstered by economic growth-boosting policies such as policy rate cuts by the RBI, better liquidity and relaxation in bank regulations, and better earnings. Foreign investors sold $30 billion due to significant underpositioning. The brokerage firm said it considers financials, consumer, oil marketing companies and defense stocks as the best bets for the next year. It is noteworthy that the Indian market closed with gains today. On Monday, BSE Sensex closed at 83,535.35 with a gain of 319.07 points (0.38%). Similarly, the NSE Nifty 50 index also closed at 25,574.35 with a gain of 82.05 points (0.32 percent).