A Reset, Not a Reversal

Research evidence excerpt

A Reset, Not a Reversal

Economics Research

15 July 2026 | 7:00PM BST

THE EM TRADER

n EM Equities: Momentum Reset, Fundamentals Intact. EM equities have come Kamakshya Trivedi

+44(20)7051-4005 |

under pressure amid an unwind in momentum trades and re-escalation of the kamakshya.trivedi@gs.com

Goldman Sachs International

US-Iran conflict. The sell-off has been concentrated in AI capex winners and

Sunil Koul

appears primarily positioning-driven, while underlying fundamentals remain +44(20)7051-4931 | sunil.koul@gs.com

intact. We think the upcoming Q2 results season will be critical to stabilize Danny Suwanapruti

sentiment and rebuild cyclical momentum. Consensus expects Q2 MSCI EM +65-6889-1987 | danny.suwanapruti@gs.com

earnings growth of over 60%yoy, led by Tech, with healthy mid-teen profit Goldman Sachs (Singapore) Pte

Alves growth excluding Tech and Commodities. Teresa | +44(20)7051-7566

teresa.alves@gs.com

n Looking For More Breadth in H2, After a Strong But Narrow First-half Rally. Goldman Sachs International

With EPS momentum improving over the past month, we continue to expect a Tarun Lalwani, CFA

+1(212)934-5821 |

broadening of gains in H2 beyond Tech and North Asia, led by cyclical laggards tarun.lalwani@gs.com

Goldman Sachs India SPL

with improving fundamentals, as long as macro volatility related to oil and rates

Victor Engel

remains contained. This includes India, where foreign investor flows have started +44(20)7051-3862 |

victor.engel@gs.com

to recover recently following record selling. We initiate a long India Banks vs. Goldman Sachs International

Pharma trade recommendation, given diverging sector fundamentals and Lexi Kanter

+1(212)855-9701 |

attractive entry levels. alexandra.kanter@gs.com Goldman Sachs & Co. LLC