New York: Goldman Sachs has upgraded India to “overweight” ahead of the make-or-break general elections. Goldman expects India’s economic fundamentals to improve, and said elections may be an important domestic catalyst for markets.
The global investment bank has put out an aggressive 12-month target of 7,600 on Nifty, which indicates a 17% upside in stock markets from current levels. The 50-share blue chip index closed at 6,500 last week.
Goldman’s bullish outlook boosted sentiments on the Street on Tuesday with the BSE Sensex rising to an all-time high of 22,040.72, surpassing its previous record of 22,023.98 hit on March 10. The broader Nifty gained as much as 1.1 per cent to a record high of 6,574.95 points, surpassing its previous record high of 6,562.85 points hit on March 11.
It retained its “overweight” call on IT and energy stocks and upgraded auto stocks. State-run ONGC, Coal India, NTPC and BPCL will be key election beneficiaries, it said. In the private sector, ICICI Bank, L&T, Ultratech, JSW Steel, IndusInd Bank and Voltas will gain from elections, it added.
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