Goldman Sachs is "strategically bullish" on Indian equities, with a 12-month NSE index target of 8,600 points.
Goldman, however, adds further gains will be "less sharp, more earnings driven and contingent upon reform execution."
Adds demand/supply balance may turn less favourable given government's divestment targets and upcoming equity raisings.
Worries average stock valuations are highest across Asia, suggesting limited room for further expansion.
Remains overweight on banks, industrials, and upgrades technology shares to overweight on demand outlook and valuations.