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BW Businessworld

India To Grow 6.5% In 2013: Goldman Sachs

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India's economic growth is likely to accelerate to 6.5 per cent in 2013 backed by favourable external sector demand outlook and a pick-up in domestic reforms, Goldman Sachs said in a report. The Indian economy is likely to grow at 7.2 per cent in 2014, compared with 5.4 per cent in 2012, the report said.
The investment bank also raised India to 'overweight' from 'market-weight', citing growth recovery and inflation moderation ahead. The investment bank pegged December 2013 Nifty target at 6,600 points.
"Reform initiatives and changes in government leadership this fall have created a sense of optimism among the domestic investor base for the first time in over a year, and the risk of policy missteps in 2013 has been lowered," said Goldman Sachs in a report.
The investment bank added that MSCI India's valuation was well below the 5-year average of 14.9 times, affording an attractive entry point into one of the stronger structural growth markets in the region.
Nifty ended 1.62 per cent up at 5,727.45 points on 27 November.