•Goldman Sachs downgrades India from 'overweight' to 'marketweight' and slashes Nifty50 target by 14% to 25,300.
•The downgrade is attributed to the Israel-Iran conflict, rising oil prices, and their impact on India's economy.
•Earnings growth forecasts for 2026 and 2027 significantly reduced, with further cuts expected in market consensus.
•Goldman Sachs economists lowered India's 2026 GDP growth forecast to 5.9% and increased inflation (CPI) estimate by 70 basis points.
•Foreign Portfolio Investors (FPIs) have withdrawn $42 billion from Indian equities, with slow return expected due to earnings cuts and AI impact concerns.
