Synopsis: Goldman Sachs expects the Nifty 50 to reach 26,500 by June 2027, citing improving macroeconomic conditions. The brokerage upgraded utilities to overweight and identified 15 large-cap stocks, including Reliance, HDFC Bank, and Adani Enterprises, as its top picks.
After a volatile first half of the year, global brokerage Goldman Sachs has turned constructive on Indian equities, projecting the Nifty 50 to recover by June 2027. The improved outlook is backed by easing commodity prices, a stable currency, resilient domestic economic growth, and expectations of healthy corporate earnings.
The brokerage continues to favour sectors such as banking, utilities, defence, energy, aviation, hospitality, insurance, power transmission, technology, internet services, and infrastructure, while remaining cautious on exporters, downstream oil, and select materials. Based on these themes, it has identified 15 large-cap stocks as its preferred picks for the second half of the year.
The Nifty 50 closed at 24,052.05, lower than its previous close of 24,211. The index has declined 4.11% over the past year, 8% on a year-to-date basis, and 6.29% in the last six months, while gaining 0.83% over the past month.
Target and Recovery Forecast
Brokerage firm Goldman Sachs has expressed a constructive outlook for the Indian stock market, forecasting the Nifty 50 index to recover to 26,500 by June 2027. This target represents a nearly 10.1% upside from its current levels and surpasses its previous record high of 26,373. The projected recovery follows a 8% drawdown witnessed in the first half of the year.
According to a note by Goldman Sachs’ Sunil Koul, India’s market outlook has improved significantly in recent weeks due to several stabilising macroeconomic factors. These include lower global commodity prices, a stabilised domestic currency, resilient overall economic growth, and healthy earnings expectations heading into the second quarter. While ongoing geopolitical tensions in West Asia could trigger short-term market volatility, the underlying domestic indicators remain robust.
Historical Context and Rating Upgrades
This positive stance marks a reversal from March 27 of this year, when the brokerage firm downgraded India to “marketweight” and cut its Nifty target to 25,300 amid escalating oil prices from the Iran war.
Having previously lowered its 2026 GDP growth forecast to 5.9%, Goldman Sachs is now turning structural on specific sectors. In its latest update, it has upgraded Utilities to “overweight” and maintains a bullish stance on banks, energy refiners, defence, and Technology, Media & Telecommunications (TMT). Conversely, it remains “underweight” on exporters, downstream oil, and select materials.
Top Stock Picks
To capitalise on these themes for the second half of the year, Goldman Sachs has identified 15 large-cap stocks as top picks:
| Sl. No | Stock Name | CMP |
|---|---|---|
| 1 | HDFC Bank | 819.15 |
| 2 | Adani Enterprises | 3,177 |
| 3 | Reliance Industries | 1,300 |
| 4 | Hindustan Aeronautics | 4488.9 |
| 5 | Makemytrip | 59 |
| 6 | Adani Green Energy | 1558.6 |
| 7 | NTPC | 347.55 |
| 8 | Indian Hotels | 746.35 |
| 9 | Mazagon Dock | 2395 |
| 10 | Adani Power | 216.26 |
| 11 | Kotak Mahindra Bank | 379.2 |
| 12 | HDFC Life Insurance | 570.75 |
| 13 | Power Grid | 285 |
| 14 | Interglobe Aviation | 5,211 |
| 15 | Eternal | 286 |
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