Goldman Sachs sees Nifty holding its own even if China stocks rebound

Chinese stock market recovery is unlikely to lead to a massive fund outflow from India, according to Goldman Sachs Asia Pacific equity strategist, Sunil Koul. India's solid fundamentals will continue to attract long-term foreign investors. While India has been a key beneficiary of global investors' preference for Indian equities, there is concern that the recovery in China could hurt Indian stocks. Koul does not anticipate a sharp selloff even if China recovers but expects a recovery in China to be gradual, driven by underlying earnings, rather than a fast valuation recovery.