Overweight on India, earnings recovery may lift Nifty to 10,200: Goldman

Timothy Moe of Goldman Sachs says the brokerage house stayed overweight on India as the medium-term reform story remains promising.

The research firm expects the Nifty to reach 9,500 in 12 months and 10,200 by 2018-end as earnings recovery gathers pace driven by 12 percent and 15 percent profit growth this year and next, he says.

He says recent earnings upgrades are the strongest since 2011, and have supported a 13 percent rally in the MSCI Asia-Pac Ex-Japan index in Q1.

"Our models project more positive revisions in the region, but their momentum may have peaked. This is driven by a similar path in the nominal GDP growth, the dominant macro driver for aggregate earnings revisions," he says.