New Delhi, April 15 -- Global investment firm Goldman Sachs has adopted a more optimistic view on Indian financials, suggesting that the worst may be behind for the sector. In a recent report, the brokerage highlighted early signs of improvement in asset quality and operating profitability, prompting it to upgrade select banking and financial names based on earnings visibility and valuation comfort.

Goldman Sachs upgraded Axis Bank and PNB Housing Finance to 'Buy', and revised State Bank of India (SBI) to 'Neutral' from 'Sell', while reiterating HDFC Bank as its top pick in the sector. Despite near-term pressures on earnings owing to potential rate cuts and elevated credit costs, the brokerage expects the market to look past these challe...