Goldman Sachs expects growth revival in India and sees a case to upgrade India to overweight, after a year in which the domestic market has lagged other emerging markets due to flight of foreign money.

It has raised India equities to Overweight with a Nifty target of 29,000 by 2026 year-end, a 14 per cent upside from current levels, led largely by earnings growth over the next two years. GS is bullish on sectors such as financials, consumer sectors, durables, defence, TMT (technology, media and telecommunications) and oil marketing companies.

GS had downgraded India in October last year due to stretched valuations and earnings slowdown. “As the year progressed and earnings cuts materialised, tariff headwinds soured sentiment further and led to large foreign de-risking. We now see a case

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