Tag: goldman sachs

Wall Street brokerage Goldman Sachs today (November 23) estimated India's GDP growth at 9.1% in 2022. After India's economy contracted by a sharp 7% in 2020, Goldman Sachs pegged the economy to grow at 8% in 2021 and 9.1% in 2022. It earlier estimated India's economic growth to 11.1% in the fiscal year to March 31, 2022. It expects consumption and investment to be the key drivers of growth in 2022. "We expect consumption to be an important contributor to growth in 2022, as the economy fully re-opens driven by a notable improvement in the virus situation and adequate progress on vaccination," Goldman Sachs said in a report. The brokerage also forecasts the headline CPI inflation to increase to 5.8% in 2022 from 5.2% in 2021, led by an increase in core inflation as manufacturers pass on input cost increases to consumers as demand recovers with full economic re-opening.

Analysts at Goldman Sachs believe that, the market rally that started in March 2020 after hitting their lowest point 2020 has more legs, and cautions that there could be intermittent corrections along the way. "Markets, are in the first phase of a new investment cycle, which it calls a ‘Hope’ phase, following a deep recession. Investors, it says, start to anticipate a recovery in this phase and is typically the strongest part of the cycle, Goldman Sachs says. “That is what we have been seeing this year. The main triggers for the rebound, in our view, were a combination of slowing infection rates and extraordinary policy support. Financial conditions, which were tightening sharply in the early part of the lockdown, eased rapidly and governments implemented extraordinary fiscal support packages,” wrote, chief global equity strategist and head of macro research at Goldman Sachs in yesterday's report. Read more

Goldman Sachs and Nomura (Global research and broking houses) – have sharply cut their economic growth projections for India FY 21 and expect the RBI to cut rates sharply to stem the economic rout caused by the lockdown due to Covid-19 pandemic. Analysts at Goldman Sachs, for instance, expect the Indian economy to contract 0.4 percent in FY21 versus consensus median 2.7 percent following the extension of the nationwide lockdown. In April, they had expected the GDP growth to slip to 1.6 percent in FY21. Read more