Goldman Sachs anticipates two more rate cuts this year and another two in 2026, alongside a weaker dollar, creating room for Emerging Market (EM) central banks to ease further.
This environment, Koul noted, has already helped EM equities gain more than 20% year-to-date. “We think investors will continue to take allocations in the equity markets, and that continues to play out. And in that, we think India will also benefit,” he said.Read Here | Nifty may stay stuck in 24,000-26,000 band, stock picking key to returns: Ashwini Agarwal
With global conditions turning more pro-risk, Goldman Sachs expects Indian equities to deliver mid-to-high single-digit gains in the coming months. Whether the Nifty hits the 27,000 level by year-end or around Diwali remains to be seen, but the firm remains positive on the market trajectory.Goldman Sachs expects India to remain on track to achieve around 11% earnings growth in calendar year 2025, supported by improving momentum in consumption-driven sectors. According to Koul, recent weeks have seen upgrades in staples, discretionary and other consumption-linked segments, signalling a gradual improvement in sentiment.
While broader markets are still witnessing more downgrades than upgrades, Goldman Sachs believes the trend is shifting in favour of consumption. The firm sees further room for upgrades in this space, which should help earnings growth targets stay within the 11–12% range.
On sector preferences, Goldman Sachs remains overweight on consumption and financials, identifying staples, autos, quick-service restaurants, tourism, and internet/TMT (Technology, Media, and Telecommunications) names as key beneficiaries.
The firm also highlights the cement sector as a potential outperformer, noting benefits from GST cuts, margin support, and favorable demand from the property market.
Conversely, the investment house is underweight on infrastructure (excluding defence) and pharma, while maintaining a neutral stance on IT.
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