New Delhi, March 27 -- Goldman Sachs has downgraded its rating on Indian equities and slashed its target for Nifty 50, as it expects earnings downgrade cycle to begin due to the sustained rise in energy prices amid the US-Iran war.

The global brokerage firm has downgraded its stance on the market to 'marketweight' from 'overweight' on less attractive risk/reward than north Asian markets amid worsening macroeconomic conditions and slowing earnings growth. It has also cut its Nifty 50's 12-month target to 25,900 from 29,300 previously, based on earnings growth of 8% in CY26 and 13% in CY27 and 19.5x target PE.

"We see risks tilted to the downside in the next 3 to 6 months as we think the market may not be pricing in the full extent of ear...