Nifty At 10,000 Next? Here Is What Goldman Sachs Says

Sensex and Nifty rose to record highs in today's session after the weather department predicted that Monsoon rains are likely to be higher than previously forecast. The surge in the stock markets happened after a fortnight of consolidation wherein the Nifty moved in a tight range of 100 points. In today's session, sentiment also got a boost after foreign institutional investors bought shares worth Rs. 333 crore in Tuesday's session after being net sellers for most part of this month.

AK Prabhakar, head of research at IDBI Capital Markets and Securities says, "The recent trigger for Sensex and Nifty hitting new highs is the monsoon update which came yesterday. The weather department has said that monsoon is likely to be very good as El Nino fears have subsided." Meanwhile, international brokerage Goldman Sachs has said that it remains bullish on emerging markets like Indonesia, India and China. In case of India, Goldman Sachs expects Nifty to hit 10,000 by June 2018.

Yes Bank, ITC and Maruti Suzuki are among the top stock picks of the brokerage house in the Indian markets.

Goldman's positive stance on Indian markets is likely to give a fillip to the year-to-date 14.76 per cent rally in Indian markets. Many analysts have questioned whether the rally has enough legs to take Nifty above 9,500 at a time when earnings recovery is yet to happen.