Goldman Sachs bullish on Indian equities, sees 'less sharp' gains

Global brokerage Goldman Sachs has said it is "strategically bullish" on Indian equities, with a 12-month Nifty target of 8,600 points.

It, however, added that further gains will be "less sharp, more earnings driven and contingent upon reform execution."

The brokerage also said demand-supply balance may turn less favourable given the government's divestment targets and upcoming equity raisings.

Goldman also expressed concern about average stock valuations, which are highest across Asia, suggesting limited room for further expansion.

It remained overweight on banks and industrials, and upgraded technology shares to overweight on demand outlook and valuations.

(Reuters)