No political bias in report on India: Goldman Sachs

Says report only notes that investor sentiment is being influenced by party politics

DDrawing flak over upgrading Indian equities on hopes of an electoral victory for the Bharatiya Janata Party(BJP)’s prime ministerial candidate Narendra Modi in the Lok Sabha elections, global investment banker Goldman Sachs on Friday said it stood by its report, based on investor sentiments, and it did not have any political bias.

“Our Asia-Pacific Portfolio Strategy report... Contains no political bias nor any political opinion by Goldman Sachs  or its analysts.It simply notes that investor sentiment is being influenced by party politics. We stand by that assertion and by our research,” the bank said in a statement.

A recent report of the global investment banker which praised BJP's prime Ministerial candidate Narendra Modi and suggested victory for the BJP-led NDA in the forthcoming general elections, created a political storm with Commerce and Industry Minister Anand Sharma describing it as "most inappropriate and objectionable".

 

Goldman Sachs further said as securities firm, its role included providing "objective, impartial and independent research that explains to investors the fundamental reasons driving market sentiment and direction, including relevant political factors."

 

The November 5 report of the Goldman Sachs  said, “BJP-led National Democratic Alliance (NDA) could prevail in the next Parliamentary elections that are due by May 2014. Equity investors tend to view the BJP as business-friendly, and the BJP’s prime ministerial candidate Narendra Modi as an agent of change.”

Goldman’s report inappropriate, says Sharma

Drubbing Goldman Sachs’ recent report on India as “most inappropriate and objectionable”, Commerce and Industry Minister Anand Sharma on Friday said the country will not entertain any prescriptions from unconnected entities.

“India's growth story has always been strong and intact. What one needs to look at are the micro fundamentals of our economy (and) where the strength lies —  the high rate of savings and investments,” he told reporters.