Goldman Sachs upgrades India to 'overweight'
MUMBAI (Reuters) - Goldman Sachs raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead.
The investment bank pegged December 2013 Nifty target at 6,600 points.
"Reform initiatives and changes in government leadership this fall have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," said Goldman Sachs in a report.
The investment bank added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.
Nifty ended 1.62 percent up at 5,727.45 points on Tuesday. (Reporting by Abhishek Vishnoi and Manoj Dharra; Editing by Subhranshu Sahu)
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The BSE Sensex on Tuesday breached the psychologically key level of 27,000 points for the first time to hit its third consecutive record high as blue-chips such as HDFC Bank gained after recent data raises hopes about the economy. Full Article