NIFTY to reach 27000 by... - Goldman Sachs Bullish On India Story

In what may come as a relief for India-investors amid ongoing fall in the equity indices, investment banking giant Goldman Sachs has said that Nifty is expected to reach 27,000 by the end of 2025, representing a 12% upside from its current levels. Taking a note of the selling by foreign Institutional Investors (FIIs), the Goldman Sachs report further said that a strong buying by domestic players, including the SIP inflows from retail investors may prevent the market from a further correction.

Noting that India continues to exhibit a robust long-term growth potential, driven by a young and growing population, increasing urbanisation, and a rapidly expanding middle class, the report said that structural factors such as digitization, a strong domestic market, and government reforms continue to support the country's growth trajectory. "These fundamentals give India a solid foundation for sustained economic expansion over the next decade," the report said.

Nifty in 2024

As of 2024, the Nifty has experienced notable fluctuations, with a moderate performance throughout the year. While there have been periods of growth, the overall index has faced challenges due to global economic factors, inflation concerns, and other uncertainties.

Slowdown Affecting Economic Growth

However, despite the positive long-term outlook, India is currently experiencing a cyclical slowdown in economic growth, the report said, noting that the slowdown is evident across several key sectors, including manufacturing, exports, and consumer demand.

Navigating a Soft Patch

While India’s growth story remains largely intact, the cyclical slowdown is presenting headwinds for the economy and corporate earnings. The market’s near-term outlook is cautious, with growth pressures affecting profitability. However, India's long-term prospects remain strong, and investors are advised to stay mindful of the current market dynamics while being prepared for recovery as the economy rebounds - the report said.