Goldman Sachs Group Inc. has turned overweight on Indian stocks, expecting government policies and improving corporate earnings to help the nation’s $5.4 trillion market catch up with Asian peers.
The Wall Street bank expects the NSE Nifty 50 Index to reach 29,000 by end-2026, implying a 14% upside from closing levels on 7 November 2025. The firm had downgraded local shares in October last year due to high valuations and expectation of a slowdown in profit growth.
Goldman joins Societe Generale SA and HSBC Holdings Plc in forecasting a rebound for Indian equities, which have trailed regional peers by the most in over two decades. The easing in valuations and expectations of an economic recovery—helped by cuts in consumption tax and interest rates—are boosting investor confidence in local shares.
There’s “a case for Indian equities to perform better over the coming year,” analysts including Sunil Koul and Amorita Goel wrote in a note.
Goldman Sachs expects profit growth for MSCI India companies to rise from an estimated 10% in 2025 to 14% next year. The bank favours financial services, consumer goods, and defense as its top investment sectors.