Market outlook: Goldman Sachs sets Nifty target of 11,600 for Dec 2018

Sees surge in global GDP growth benefitting global equities; expects RBI to hike rates next year

Goldman Sachs expects the healthy run in the global equity markets, including India, seen this year to continue in 2018 as well. The US-based brokerage expects the benchmark Nifty to climb to 11,600 by the end of the next calendar year, implying a 12 per cent upside from current levels. The forecast is impressive, considering the 50-share index has already rallied 28 per cent in the past one year.
 
Goldman Sachs estimates earnings growth of 18 per cent and 17 per cent in calendar years 2018 and 2019, respectively. “We expect solid earnings growth delivery in the next year