Goldman Sachs gives 4 themes, 11 stocks for India alpha hunters after largest Nifty underperformance in two decades

Goldman Sachs has upgraded its stance on India to “Overweight” and set a target of 29,000 for the Nifty 50 by end-2026, citing expected earnings growth of about 14% for FY26-27. It noted that India’s equity market has shown its largest under-performance in two decades in US-dollar terms, which the firm views as indicating potential upside. For investors aiming for alpha (returns above the index), it identified four key themes: Domestic self-sufficiency (defence, power, renewables) Mass consumption revival (consumer spending bounce) New-economy sectors (digital, EVs, internet) High-growth companies at reasonable valuations (screened 11 stocks with ~31% earnings growth next year)