Goldman Sachs downgraded Indian equities from ‘overweight’ to ‘marketweight’, making this the first downgrade for the market in over 4 years.
The company stated that the downgrade was on account of factors such as expected economic slowdown, risks associated with the upcoming Lok Sabha elections, and expensive market valuations. This is according to a report by The Times of India.
According to a report by Quartz India, analysts of the company expect the Nifty to touch 12,000 points. The Indian stock indices have been performing well in 2018, with the BSE Sensex touching a record high of 34,382 points in January. The report also stated that the weakening Indian currency, increased crude prices and a slow market for institutional investments could bring this high to an end.
According to the report, Indian equities are the costliest in Asia, costing around 58 per cent more compared to others in the region.
Sources: The Times of India, Bloomberg Quint, Quartz India.
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