India Weekly Kickstart NIFTY closed the week flat as oil stabilized

Portfolio Strategy Research 18 September 2026 | 3:15PM BST

NIFTY closed the week flat as oil stabilized; Rate-sensitives lagged; Core inflation pressure broadened in August; We highlight India ‘AI Enablers’ hiding beneath a laggard index

Weekly Wrap Korea, Taiwan, China and Japan. Sunil Koul | n Performance: NIFTY closed flat w/w after five weeks of n However, beneath the headline index, a cohort of 42 ‘AI Goldman Sachs International

drawdown, as Brent prices stabilized (down 1% w/w). Amorita Goel, CFA Enablers’, across power, data center and semiconductor | Across sectors, pharma and FMCG led (up 1%), while segments surged ~60% YTD, the best-performing Goldman Sachs (Singapore) Pte

rate-sensitive pockets like autos and real estate lagged Timothy Moe, CFA pocket in India, driven by earnings accumulation. | (down 1%). Goldman Sachs (Singapore) Pte n Looking ahead, consensus expects earnings growth of n Valuation: MSCI India traded at fP/E of 19.4x, c.88% AI Enablers to remain well ahead of the broader market premium to MXAPJ. over the next several years, with a strong earnings n Flows: FIIs sold $0.4bn wtd (-$25bn YTD). DIIs bought upgrade cycle underway. $1bn wtd (+$64bn YTD). See more details here: India AI Complex, Part 1: ‘AI Enablers’ n Monsoon: 2026 monsoon (Jun 1-Sep 17) closed 15% Hiding Beneath A Laggard Index below normal with c.50% of India receiving deficient rainfall. Water level in reservoirs is c.10% below normal. Focus: Refreshing our FII, DII and Retail ‘favorite’ Farm tractor sales volume growth dropped in August to a baskets 13-month low. n We refresh our Foreign <GSCBINFF>, Mutual Fund n Macro: August headline inflation came slightly below <GSCBINMF> and Retail <GSCBINRF> favorite expectations, but core inflation pressure broadened as baskets, which include 25 stocks each, with high and higher input costs passed through to goods prices. rising ownership across the three shareholder categories, based on 2Q 2026 (Jun-end) company Focus: AI Enablers Hiding Beneath A Laggard Index filings of BSE200 companies. n India has become the default “anti-AI” trade. MSCI India’s AI-exposure is far below regional peers such as

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Goldman Sachs India Weekly Kickstart

Exhibit 1: India AI Enablers, a cohort of Indian AI infrastructure plays, is up Exhibit 2: Earnings calls are surfacing a new AI infrastructure-specific ~60% in 2026, even as Nifty is down 12% over the same period vocabulary

Performance of India AI Enablers (Equal-weighted, INR price returns, Indexed to 100) 160 India AI 150 Enablers Nifty 110 Midcaps Nifty 100 Smallcap 90 s Nifty 50 80 70

Jun-25 Jun-26 Jan-25 Jan-26 Dec-24 Feb-25 Mar-25 Apr-25 May-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Feb-26 Mar-26 Apr-26 May-26 Jul-26 Aug-26

Source: Bloomberg, Goldman Sachs Global Investment Research Source: Refinitiv Eikon, Goldman Sachs Global Investment Research

Exhibit 3: Forward earnings growth is expected to be materially ahead of the Exhibit 4: AI Enablers have been in a strong earnings upgrade cycle, even as the broader market broader market has been in a downcycle

Earnings Growth (YoY, %), Consensus Estimates Earnings Revisions YTD 60% AI Enablers MSCI India MSCI India Small Mid 125 (CY27E, rebased to 100) 53% AI Enablers 50% 120

39% 115 40% 29% 110 30% 23% 23% 22% 20% 105 20% 16% 16% 14% 10% 12% 100 NSE 500 10% 95

Dec-25 Jan-26 Jan-26 Feb-26 Feb-26 Mar-26 Mar-26 Apr-26 Apr-26 May-26 May-26 Jun-26 Jun-26 Jul-26 Jul-26 Jul-26 Aug-26 Aug-26 Sep-26 0% CY25 CY26E CY27E CY28E Note: Earnings growth of AI Enablers is aggregated based on equal-weighted portfolio, while that of MSCI indices is based on index weights to reflect broad market trends.

Source: FactSet, Goldman Sachs Global Investment Research Source: FactSet, Goldman Sachs Global Investment Research