# Goldman Sachs flags lower FCF yields for India, US markets 2026-08-24T11:42:54+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet A Goldman Sachs report says rising valuations are making US and Indian equity markets less attractive due to lower free cash flow (FCF) yields. The S&P 500 and the Nifty 50 both offer an FCF yield of 2.7 percent, compared to 5 percent for Europe's Stoxx 600. The report notes that a surge in capex by leading US tech companies, especially for AI, has eroded their premium cash flows, forcing them to seek external funding. Separately, India's top-listed residential real estate developers saw a moderation in pre-sales in the first quarter of FY27, due to delayed project approvals, limited launches, and high year-ago bases. Godrej Properties led with bookings of Rs 8,651 crore, up 22 percent year-on-year, while DLF reported a 94 percent drop to Rs 657 crore due to the absence of new launches. Analysts said the moderation does not point to a structural weakening, as customer response for new projects remained healthy. ## Indian Opinion Analysis The FCF yield gap between US/India and Europe has been widening as tech giants pour cash into AI infrastructure. This is a shift from the post-2008 period when these firms were capital-light and generated high free cash flows. For Indian investors, the real story is that Nifty 50 companies now yield the same FCF as the S&P 500 but without the AI growth narrative. In real estate, the key metric to watch is Q2 FY27 pre-sales: if approvals ease, launches should pick up and confirm whether demand is truly intact. The next quarterly results in October will settle that question. ## Coverage - rediff.com Reports Goldman Sachs analysis and Q1 real estate data without editorialising or taking sides. This story was synthesised by AI from the source linked above. Tags: DLF, Godrej Properties, Goldman Sachs, Nifty 50, S&P 500 Canonical: https://indianopinion.org/goldman-sachs-flags-lower-fcf-yields-for-india-us-markets/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/goldman-sachs-flags-lower-fcf-yields-for-india-us-markets/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/