Global investment bank Goldman Sachs has reaffirmed its overweight stance on India, days after presentation of Union Budget 2016. However, the investment bank has revised its December Nifty target to 8,200 from 8,600 earlier.
This still implies a 10 per cent upside from current Nifty levels of around 7,400.
Goldman Sachs expects the upside in Nifty to be driven by 10-14 per cent earnings growth trajectory. However, the investment bank cautioned on private sector investment, saying that it is likely to remain subdued.
Goldman Sachs remains overweight on oil refining and marketing companies; Reliance Industries, Indian Oil, BPCL and HPCL are among its top stock picks.
Titan, Maruti Suzuki, Eicher Motors, Godrej Consumer and Asian Paints will benefit from higher consumer demand, it said.
Goldman Sachs also likes Larsen & Toubro, UltraTech and Cummins India, saying these stocks will benefit from higher government capital expenditure.
[“source-ndtv”]