STOCKS | Goldman Sachs Downgrades India Stocks Amid Energy Price Concerns

Goldman Sachs has revised its rating on Indian stocks from 'overweight' to 'neutral,' citing concerns over the long-term impact of high energy prices on India's macroeconomic structure. According to Jin10, the investment strategy team at Goldman Sachs highlighted that India's economy is more susceptible to energy shocks, prompting a downward revision of India's GDP growth forecast for 2026 by 1.1 percentage points to 5.9%. The team also adjusted its earnings growth expectations for the Indian stock market over the next two years, cumulatively lowering them by 9 percentage points. In the short term, Goldman Sachs anticipates a decline in investor confidence towards Indian stocks. The team has reduced the 12-month target price for the Nifty 50 index from 29,300 points to 25,900 points. Despite these adjustments, the Nifty 50 index recently closed up 1.7%, reaching 23,306.45 points.