Goldman Sachs downgrades Indian equities from ‘overweight’ to ‘neutral’ due to slowing growth

Global investment firm Goldman Sachs has revised its stance on Indian equities, downgrading it from ‘overweight’ to ‘neutral’ in its allocation to Asia/emerging markets, citing expectations of a ‘time correction’ in the next three to six months. While Goldman believes a significant ‘price correction’ is unlikely due to strong domestic flows, he points out that high valuations and a less favorable backdrop could limit upside potential. At a sector level, Goldman Sachs remains bullish on autos, telecoms and insurance, and has upgraded the real estate and internet sectors to overweight. However, the rating for cyclical sectors, including industrials, cement, chemicals and financials, has been downgraded. The brokerage suggests that investors focus on quality and earnings consistency. Hear insights from market expert Mitesh Panchal on how to tackle these shifts in the Indian stock market.