A battered government has some good news to cheer this week. First, rating agency Moody’s kept the country’s rating outlook at stable, providing a breather after two other global firms downgraded it to negative.
Goldman Sachs on Thursday upgraded Indian equities to ‘overweight’ from ‘market-weight’. The Wall Street investment bank has cited a recovery in growth and inflation moderation going ahead as reasons for its upgrade. It has set an end-2013 end target for the Nifty at 6,600 points, a 14 percent upside from current levels.
And there’s some more good news. Goldman said that economic growth is likely to accelerate to 6.5 percent in 2013 backed by favourable external sector demand outlook and a pick-up in domestic reforms.
All this is boosting sentiment on the street. The Sensex crossed 19,000 in trade on Thursday.
Goldman’s India upgrade comes a bit late in the day, as UBS, Deutsche Bank and JPMorgan have already raised their India equity targets in recent months. But Standard & Poor’s and Fitch still have a negative outlook on India.