Nifty 50 may reach 23,500 by end-2024, Goldman Sachs predicts

Goldman Sachs on Nifty: Like the year 2023, the Indian stock market may continue to grow exponentially in 2024. American investment bank Goleman Sachs has predicted that the National Stock Exchange’s Nifty could reach 23,500 by the end of 2024. On January 9, 2024, the Nifty closed at 21,544. This means that even from this level, Nifty can move up to around 2000 points.

Goldman Sachs has revised its target for the Nifty for the second time in just two months. The Nifty is currently at 21,544 points but it may increase by 2000 points or 9 percent from the current level by the end of the year and the Nifty 50 index may reach the level of 23,500. Earlier, Goldman Sachs had given a target of 21,800 for the Nifty, which the Nifty has already touched. Goldman Sachs said in its note that foreign investors are finding the Indian market expensive but premium valuation is the case.

Goldman Sachs said that earlier conditions were not favorable due to low global growth, China’s slowdown, high interest rates and global political turmoil. This led to Nifty targeting 21,800. But in recent times, there has been a major shift in global growth and rate dynamics. Goldman Sachs said in its note that its change in thinking comes after being influenced by the US Federal Reserve’s stance in December.

Economists at Goldman Sachs also expect a cut in interest rates in India. He believes that the Reserve Bank of India will start cutting interest rates from the third quarter of 2024. While earlier Goldman Sachs had predicted a cut in interest rates from the fourth quarter. According to Goldman Sachs, India’s GDP is projected to be 6.2 percent in 2024.

The note said the external balance remains favorable due to narrowing current account deficit, strong public market capital inflows, adequate foreign exchange reserves and reduction in external debt. After the commodity team forecast oil prices to average $81 a barrel in 2024 and services exports to strengthen, our economists recently revised down India’s current account deficit forecast in 2024, the note said. It has been reduced by 60 basis points to 1.3% of GDP. .

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