Goldman Sachs downgrades India from 'overweight' to 'marketweight'

The US-based investment firm has also lowered the Nifty target to 9,600 for June 2021, expecting substantial downward revisions to corporate earning

Goldman Sachs has downgraded its stance on the Indian markets to ‘marketweight’ from ‘overweight’, citing “delayed recovery and extended valuations”.

The US-based investment bank has also lowered the Nifty target to 9,600 for June 2021, expecting substantial downward revisions to corporate earnings.

“Valuations look optimistic even accounting for a recovery. With uncertainty about near-term earnings, P/E multiples using perfect EPS foresight and on CY21, EPS remain well above previous crisis levels,” Goldman Sachs said in a note.

India’s trailing price-to-book (P/B) ratio at 2.2 times is 15 per cent above the trough of the 2008-09 global financial crisis (GFC), it says.

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