Mumbai, Feb 24 Global brokerage firm Citi on Monday said that it expects the Nifty 50 index to touch 26,000 by December this year, a potential 15 per cent upside from current levels.
The brokerage firm also upgraded India’s market outlook from ‘Neutral’ to ‘Overweight,’ citing strong growth potential, attractive valuations, and improving consumption trends.
In its latest research report, Citi said that Indian equities offer a 'meaningful upside' amid 'less demanding' valuations. Brokerage firm’s report outlines three key factors driving its positive outlook on India.
The first is the recent tax cuts announced in the Union Budget for FY26, which are expected to boost consumer spending and improve demand.
The second factor is the recovery in public capital expenditure, with data showing strong government spending on infrastructure and growth initiatives.
Lastly, the brokerage expects further easing in monetary policy. The Reserve Bank of India (RBI) has already cut rates by 25 basis points, and Citi anticipates another 50 basis points of rate cuts in the coming months.
The brokerage sees the country’s largely domestic-driven economy as an advantage, making it well-positioned to withstand global uncertainties, including concerns over US tariff policies.
The upgrade comes as the domestic benchmark indices face continued pressure.
Over the past five trading sessions, the Sensex has shed 1,542 points, or 2 per cent, while the Nifty has declined by 406 points, or 1.76 per cent.
Despite this correction, Citi remains optimistic about India’s medium-term growth prospects.
US President Donald Trump’s recent announcement of new reciprocal tariffs has shaken global markets which raises fears of trade tensions.
However, Citi noted that Indian companies have limited exposure to trade with the US and China which reduces risks from these policy changes.
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