Goldman Sachs India has set a target of 6,800 for Nifty during the calendar year 2011. According to the firm’s recently unveiled Goldman Sachs Global Economics, Commodities and Strategy Research report, the county’s GDP is projected to grow at a robust 8.7% in FY12, driven primarily by investment demand, and 8.3% in FY13.
Timothy Moe, the firm’s chief Asia Pacific regional equity strategist, expects most of the rise in Indian equities to come in the latter half of 2011. This is because he believes valuations are at elevated levels right now but valuation concerns might be somewhat assuaged in the second half of 2011 on the back of strong economic growth and corporate earnings growth in excess of 20%.