Time's up for India's world-beating stock market rally, says Goldman Sachs

The nation's equity market looks less favorable amid elevated valuations, a potential slowdown in economic growth and upcoming elections, according to Goldman Sachs analysts

Goldman Sachs Group Inc. has called time on the world-beating surge in Indian stocks.

The nation’s equity market looks less favourable amid elevated valuations, a potential slowdown in economic growth and upcoming elections, according to Goldman Sachs analysts, who cut India to the equivalent of a hold rating from buy. The firm has been bullish on Indian stocks since March 2014 and the market has nearly doubled since then, returning more than twice that of global equities.

"The risk-reward for Indian equities is less favourable,” the analysts, including Sunil Koul, wrote in a report dated September 16. "The key reasons