Goldman Sachs Downgrades India, Slashes Nifty 50 Target by 14% to 25,300

• Goldman Sachs downgraded India's equity market to "marketweight" from "overweight" and cut Nifty 50 target.
• The brokerage reduced its 12-month Nifty 50 target to 25,300 from 29,500, a 14% cut, citing lower earnings growth forecasts.
• Earnings growth forecasts for 2026 and 2027 were cut to 8% and 13% respectively, from 16% and 14% due to the West Asia war.
• FPIs have sold a record $42 billion in Indian equities since September 2024, with re-entry impeded by earnings cuts and AI concerns.
• Goldman Sachs is overweight on banks, staples, telecom, defence, and energy, while downgrading domestic cyclicals and oil marketing companies.