Goldman Sachs sees renewed foreign buying in Indian stocks, lifts outlook

Foreign investors bought a net $1.3 billion of Indian equities in the four trading days through July 9, then added another $272 million on Friday, marking the biggest weekly buying since at least June 2025. Goldman Sachs sees that surge extending, with a stable rupee and firmer earnings expectations helping draw overseas money back into Indian stocks.

A firmer India stance means more attention from sales, trading and banking teams that cover the region, especially if clients start rebuilding exposure after months of selling. Goldman’s July India Strategy note sees the recent rebound as a turning point, with foreign selling in Indian equities likely over and overseas investors still holding fewer Indian stocks than usual after a record selloff earlier this year.

Goldman kept its June 2027 Nifty 50 target at 26,500, which implies about 10% upside from current levels. Goldman’s note cites lower commodity prices, resilient domestic demand and better macro conditions as part of the improving backdrop. It also cites the return of foreign capital as support for large-cap stocks, with banks and utilities among the likely beneficiaries.

Goldman’s view was more cautious in May 2026, when Indian equities offered a less attractive risk-reward trade than North Asia and foreign investors were unlikely to return quickly even if crude oil prices eased. Since then, the NSE Nifty 50 has still been down 7.4% so far in 2026 and about 7.8% below its record high, even after a rebound of roughly 8% from its one-year low in April.