<p>Bengaluru: Goldman Sachs upgraded Indian shares to "overweight" from "marketweight", citing strong economic growth prospects, steady domestic mutual fund inflows and a potential supply chain shift from China.</p>.<p>Indian markets will continue to gain in 2024, supported by steady earnings growth and macroeconomic stability in what would otherwise be a "tricky" period in the Asia Pacific region, Goldman Sachs analysts led by Timothy Moe wrote in a note.</p>.<p>"We believe India has the best structural growth prospects in the Asia Pacific region and offers mid-teen earnings growth over the next two years," Moe said in a note.</p>.<p>The Wall Street brokerage expects India's real economic growth to be 6.5 per cent in 2023 and 6.3 per cent in 2024 - the highest among large economies in the region, but slightly below the Indian central bank's target of 6.5 per cent for fiscal 2024.</p>.Sensex, Nifty rebound on fag-end buying; power, utility shares advance.<p>The benchmark Nifty 50 jumped about 31 per cent between March 2021 and October 2023, a period during which domestic investors remained net buyers each month, helping tide over sustained sales by foreign investors.</p>.<p>While the domestic participation was a healthy sign, said Goldman, it also noted the market's surge has pushed valuations to an elevated 20 times the next 12 month's expected earnings.</p>.<p>Still, that valuation had some support after earnings growth of 17 per cent in 2023, the brokerage said.</p>.<p>Goldman also raised Thailand to "overweight", while lowering Hong Kong-listed China shares to "marketweight".</p>.<p>The brokerage said concerns over China's economy could lead to countries shifting their supply chains, which could benefit India.</p>.<p>The Nifty 50 has gained roughly 7 per cent in 2023 so far, compared to a 3.75 per cent drop in the MSCI Asia ex-Japan index.</p>
<p>Bengaluru: Goldman Sachs upgraded Indian shares to "overweight" from "marketweight", citing strong economic growth prospects, steady domestic mutual fund inflows and a potential supply chain shift from China.</p>.<p>Indian markets will continue to gain in 2024, supported by steady earnings growth and macroeconomic stability in what would otherwise be a "tricky" period in the Asia Pacific region, Goldman Sachs analysts led by Timothy Moe wrote in a note.</p>.<p>"We believe India has the best structural growth prospects in the Asia Pacific region and offers mid-teen earnings growth over the next two years," Moe said in a note.</p>.<p>The Wall Street brokerage expects India's real economic growth to be 6.5 per cent in 2023 and 6.3 per cent in 2024 - the highest among large economies in the region, but slightly below the Indian central bank's target of 6.5 per cent for fiscal 2024.</p>.Sensex, Nifty rebound on fag-end buying; power, utility shares advance.<p>The benchmark Nifty 50 jumped about 31 per cent between March 2021 and October 2023, a period during which domestic investors remained net buyers each month, helping tide over sustained sales by foreign investors.</p>.<p>While the domestic participation was a healthy sign, said Goldman, it also noted the market's surge has pushed valuations to an elevated 20 times the next 12 month's expected earnings.</p>.<p>Still, that valuation had some support after earnings growth of 17 per cent in 2023, the brokerage said.</p>.<p>Goldman also raised Thailand to "overweight", while lowering Hong Kong-listed China shares to "marketweight".</p>.<p>The brokerage said concerns over China's economy could lead to countries shifting their supply chains, which could benefit India.</p>.<p>The Nifty 50 has gained roughly 7 per cent in 2023 so far, compared to a 3.75 per cent drop in the MSCI Asia ex-Japan index.</p>