Goldman Sachs, major Mover and shaker of Indian Equity Market just a while ago upgraded to overweight on India (cyclical recovery, moderate valuation, inexpensive currency) and Singapore (cyclically-sensitive, moderate valuation)
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 (for example, around the budget in late 1Q). With structural issues
being addressed and a cyclical recovery on the horizon, the equity market may bounce back strongly next year.
At 13.4X forward earnings, MSCI India’s valuation is “middle of the pack” in Asia, and well below the 5-year average of 14.9X, affording an attractive entry point into one of the stronger structural growth stories in the region.
Goldman Sachs has set a NIFTY Target of 6,600 Current levels 5780
