The Indian stock market does not offer attractive prospects for investors in the near term as the domestic and global economic growth outlook continues to be sluggish according to Goldman Sachs.
According to a report by the global investment banking major, a sluggish domestic and global growth outlook would have a bearing on the Indian equities in the coming months.
"We find that the Indian stock market does not present an attractive risk / reward entry point currently as macro headwinds are likely to persist in the near-term," it said.
The report titled India: Fade short-lived rally, not too late to underweight portfolio focused on the performance and future outlook for National Stock Exchange's 50-share benchmark Nifty index.
According to Goldman Sachs, continued weak domestic growth in the next 3-6 months as also a poor global growth environment would weigh on Nifty, which had been seeing bearish trends in recent months.
This index, according to Goldman Sachs, was the "most exposed market in Asia to a 'muddle-through' environment through liquidity and foreign corporate debt linkages".