Nifty to touch 7,000 by Dec'13: Goldman Sachs

An improvement in economic and corporate earnings growth in Asia in 2013 has created a favourable backdrop for equities, especially when valuations are inexpensive and investors are conservative, said Goldman Sachs. In its report, the investment bank said the watchwords for 2013 are ‘growth recovery’ as the US has reached a fiscal compromise and China’s growth and policy outlook has firmed. “Although somewhat stretched (in the) short-term, they have not fully discounted the fundamental outlook,” said Goldman on the outlook for Asian markets. The investment bank believes the most important sectoral rotation in 2013 will be from defensives to cyclicals(Click on graphics)