Goldman Sachs turns bullish on India, targets Nifty at 26,500
Goldman Sachs has raised its outlook on Indian equities, setting a new index target above current records and highlighting 15 large-cap stocks positioned to capitalize on an improving macroeconomic environment.
Goldman Sachs has turned constructive on India, forecasting the Nifty 50 will reach 26,500 by June 2027. This target sits just above the index's current record high of 26,373, reflecting the bank's confidence following a recent improvement in the macroeconomic backdrop.
To capitalize on this outlook, the Wall Street bank has identified 15 large-cap stocks positioned to benefit from specific themes and catalysts in the second half of the year. The selection highlights a mix of heavily sold-off financial heavyweights and high-flying energy names.
India's power sector dominates the list, driven by sustained energy demand. Adani Green Energy leads the pack with a 51% year-to-date gain, while Adani Power, a private thermal power producer, has risen 45% in 2026. State-backed NTPC, India's largest power generator across thermal and renewable energy, is up 6% for the year. Power Grid Corporation, the country's largest electric power transmission utility, has climbed 7% YTD.
Goldman's picks suggest a contrarian bet on the nation's financial sector, which has lagged the broader market. HDFC Bank, India's largest private sector bank, has dropped 17% this year. Peers HDFC Life Insurance and Kotak Mahindra Bank have also retreated, falling 24% in 2026 and over 5% in the last month, respectively.
The defence and infrastructure sectors represent another core investment theme, despite recent share price weakness. Hindustan Aeronautics, a defence PSU that manufactures aircraft and aerospace systems, has declined 8% over the past year. Mazagon Dock Shipbuilders, which builds warships and submarines, is down 3% YTD. Conversely, Adani Enterprises, the group's flagship spanning infrastructure, mining, airports and new energy, has surged 40% in 2026.
Consumer-facing businesses round out the portfolio, pointing to expectations for resilient domestic demand. InterGlobe Aviation, operator of India's largest airline IndiGo, has gained 10% in six months. Tata Group's Indian Hotels has risen 9% over the same period. Quick commerce operator Eternal, which runs food delivery and related digital consumer businesses, is up 6% over the past year.
Reliance Industries, India's largest conglomerate spanning energy, petrochemicals, retail and telecommunications, is the final name on the list. The stock has fallen 17% YTD, making it one of the most significant turnaround bets in Goldman's India strategy.
