Nifty to reach 20,500 by end-2023, implying 12% price return: Goldman Sachs

Says India's 'superior' earnings growth appears to be priced in, sees 'modest' contraction in P/E multiples going ahead; stay overweight on banks, insurers, and investment cyclicals

Goldman Sachs expects the benchmark Nifty 50 index to touch 20,500, implying a modest upside of 12 per cent from current levels. The brokerage says India’s 'superior' earnings growth appears to be priced in. It expects “modest” contraction in price-to-earnings multiples going ahead.

“We expect Nifty to reach 20,500 by end-2023, implying 12 per cent price return, led by mid-teen earnings growth and a modest P/E compression (as light foreign positioning and geopolitical factors could support India’s multiples). Returns are likely to be backloaded, as growth recovers in 2H and equity flows pick up. We stay overweight on banks, insurers,