Goldman Sachs has raised the 2024-end goal for the benchmark Nifty50 index to 23,500, a 9 per cent upside from the present ranges on the again of an earnings improve and valuation re-rating.

The US-based brokerage had earlier set a goal of 21,800.

“Higher macro combine led us to lift our Nifty 2024-end goal to 23,500 which suggests 9 per cent value and 12 per cent greenback complete return, led by earnings. Our revised goal incorporates 2 per cent larger earnings per share (EPS) and 6 per cent larger goal price-to-earnings P/E (19.3x),” Goldman Sachs mentioned in a notice.

The brokerage says the worldwide macro atmosphere has turned extra beneficial in comparison with two months in the past with the expectations of stronger US progress and optimism round price cuts by the US Federal Reserve.

“Whereas markets have partly priced this, a greater progress/price combine lately led us to lift our Nifty index goal, incorporating the next ‘goal’ valuation a number of. We now count on Nifty to succeed in 23,500 by end-2024 led by mid-teen earnings. We retain our desire for home (over exterior) sectors and enormous caps (over mid/small caps) and refresh varied cyclical and medium-term alpha concepts,” mentioned Goldman Sachs’ fairness strategists Sunil Koul and Timothy Moe in a notice.

Among the many key themes recognized by the brokerage are Make-in-India, defence, and vitality transition.

It expects firms within the MSCI India index to log earnings progress of 15 per cent this 12 months and 14 per cent in 2025. In 2023, the MSCI India universe posted earnings progress of 20 per cent.

First Revealed: Jan 09 2024 | 4:01 PM IST