Goldman downgrades Indian stocks to "underweight"

The external funding environment has also become challenging causing RBI to tighten liquidity, the investment bank said in a note.

Updated: Aug 01, 2013, 09:34 AM IST

Mumbai: Goldman Sachs downgraded its rating on Indian stocks to "underweight" on concerns about delayed growth recovery and rising vulnerabilities for the economy.

The external funding environment has also become challenging causing RBI to tighten liquidity, the investment bank said in a note.

Goldman Sachs also expects corporate earnings to grow at 5 percent for the current fiscal year and 11 percent for the next year, below consensus estimates.

Reuters