Goldman Sachs has updated its alpha picks portfolio with strategic sector rotation, increasing exposure to Power (+1.43%), Telecom (+1.07%), and Metals (+0.67%) while reducing positions in Financial services (-4.23%), Chemicals (-0.99%), and Auto (-0.94%). According to the latest monthly release from the fund house, this selective approach reflects changing market dynamics and brokerage confidence in specific sector fundamentals. The updated portfolio comes as foreign investors have sold Indian equities worth $22 billion so far in 2026, with Goldman Sachs indicating that the bulk of foreign selling is likely over.
Goldman Sachs has named Bajaj Auto among its alpha picks, with foreign investors owning 20% of the company's free floating market capitalisation at the end of the fourth quarter of FY26. The two-wheeler maker has demonstrated strong performance, with shares hitting a fresh 52-week high of ₹10,785 apiece on May 8, representing a significant recovery from previous levels. This selection reflects Goldman Sachs' confidence in the company's positioning despite broader market challenges affecting foreign investor sentiment.
Goldman Sachs has reiterated its positive stance on Shyam Metalics & Energy, citing strong earnings growth and balance-sheet strength as key factors supporting the investment thesis. According to reports from The Economic Times, the brokerage's continued buy recommendation reflects confidence in the company's financial fundamentals and growth trajectory. The positive outlook comes amid selective optimism from brokerage houses toward certain market segments, with Goldman Sachs' alpha picks strategy demonstrating this nuanced approach across different sectors.
Brokerage houses are taking a selective approach to the market, backing companies with strong earnings visibility while remaining cautious on demand-sensitive sectors. As reported by The Economic Times, this nuanced investment landscape reflects the current market conditions where near-term demand visibility varies significantly across different industry segments. The selective approach demonstrates how brokerages are navigating the current market environment with precision, with Goldman Sachs' alpha picks strategy exemplifying this approach across multiple sectors.
Several companies in Goldman Sachs' alpha picks portfolio have shown mixed performance trends. Swiggy's foreign ownership fell nearly 2% to around 20% at the end of Q4 FY26, with the stock down over 44% from its 52-week high of ₹474 apiece. Similarly, Paytm-parent One 97 Communications saw foreign ownership decline more than 2% to 24%, with shares falling more than 13% from their 52-week high of ₹1,381.80. Conversely, Siemens emerged as a standout performer, with foreign investors owning 27% and shares hitting a fresh 52-week high of ₹3,930 apiece on May 4. This performance diversity across the portfolio reflects the selective nature of current brokerage recommendations.
