# Goldman Sachs Predicts Nifty Rallying to 26,500 Nearly 9.5% upside potential forecasted. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-14 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/879bb841-4876-4a04-8dd6-06d9003d1957 ## Nifty's Upside Potential Goldman Sachs predicts the Nifty index could rally to 26,500, implying nearly a 9.5% upside from current levels. Analysts cite India's improving economic outlook as the basis for this forecast. ## Economic Recovery Impact Declining commodity prices, a stabilized currency, and robust second-quarter expectations paint a positive picture for India's economy. Goldman Sachs believes these factors will support Nifty's upward trajectory. ## Near-Term Volatility Tensions in West Asia may fuel near-term market volatility. However, 'ultra-light' foreign investor positioning leaves ample room for inflows to return, according to the brokerage. ## Role of Foreign Investors Goldman Sachs suggests foreign investor selling is likely over, and sentiment should turn incrementally favorable due to improved domestic outlook. This could serve as a significant support factor for the market. ## Sector Preferences The brokerage recommends going long on banks, tourism, and energy refiners. Large-cap companies are seen as more advantageous compared to mid-cap and small-cap firms. ## Investment Strategy Goldman Sachs expects a rotation from 'Growth' to 'Value' as investors seek reasonably valued pockets in anticipation of a recovery. Companies like Reliance Industries and HDFC Bank are highlighted as top picks. ## Sources covering this story - https://economictimes.indiatimes.com/markets/stocks/news/goldman-sachs-sees-nifty-rallying-to-26500-signals-nearly-9-5-upside/articleshow/132378525.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._