By Aparna Deb,News18

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Goldman Sachs sees more upside for global equities, including India, according to Sunil Koul, the firm’s Emerging Market Equity Strategist. “We do expect markets to go higher. We have a 27,000 target for Nifty on a 12-month basis,” Koul told CNBC-TV18.
He added that whether the index reaches that level sooner — by Diwali 2025 or year-end — remains to be seen.
On the global backdrop, Koul said: “The US economy is slowing but avoiding recession. The Fed is cutting rates, and we expect two more this year and another two in 2026. That gives emerging market central banks space to ease policy. The dollar is weakening, making the environment pro-risk. That’s why EM equities, including India, will continue to attract allocations.”
Uneven sectoral growth in India
Koul highlighted that India’s growth remains uneven across sectors. “India doesn’t play into the AI story. Consumption is picking up, but credit growth hasn’t accelerated. IT is doing well but remains dependent on the US, where growth is still soft. Consumption is the bright spot, while other sectors may take longer,” he said.
Goldman Sachs continues to project 11% full-year earnings growth, with scope for upgrades in consumption-driven companies following the GST rate cut. However, Koul noted earnings downgrades in broader markets over the past month.
India lags EM peers
So far in 2025, India has underperformed emerging markets by more than 20% — its steepest relative underperformance in three decades, Koul pointed out.
China vs India
“China has performed much better. India’s valuation premium has come down, but for the country to outperform, it will need not just cheaper valuations but stronger growth and earnings,” he said, adding that financials remain well placed to lift the market.