Global investment bank Goldman Sachs has predicted that the Nifty 50 index could touch 29,000 points by the end of next year, which is about 14% higher than its current level of 25,574. The bank has upgraded its rating on Indian equities to ‘Overweight’.
Goldman Sachs noted that although India’s stock markets have lagged behind other emerging markets so far in 2025, they are poised to become one of the fastest-recovering markets going forward. In October 2024, Goldman Sachs had downgraded Indian equities, citing that India’s stock markets were showing their weakest performance in two decades.
So far this year, foreign investors have withdrawn $30 billion (around ₹2.6 lakh crore) from Indian equity markets. Mutual fund allocations have also fallen to their lowest level in nearly two decades, according to the bank. Hence, the upgrade in India’s equity rating under such circumstances is considered noteworthy.
Goldman Sachs highlighted several sectors with positive growth prospects:
- Financial Services: With credit growth expected to rebound and asset quality remaining stable, the bank projects a 15% rise in sector profits in FY2025–26.
- Consumption-Driven Sectors: Due to tax cuts, rising rural incomes, and increased government spending, Goldman Sachs has upgraded its rating on automobile and durable goods sectors to ‘Overweight’.
- Defence: With a surge in orders and the government’s focus on domestic defence production, this sector’s rating has also been upgraded.
- Oil & Telecom: Strong margin growth and rising digital consumption have led Goldman Sachs to maintain a positive outlook on oil marketing and telecom companies.
However, the bank remains bearish on certain sectors:
Industries that rely heavily on exports — such as IT services, pharmaceuticals, industrials, and chemicals — have been given an ‘Underweight’ rating.