Citi research forecasts 14% earnings growth for Nifty: Sector insights and Q3 performance

Citi Research’s latest insights shed light on a promising outlook for India’s Nifty, with a projected 14% compound annual growth rate in earnings for the next couple of years. The research highlights the resilience of the energy sector and impressive performances in select industrials stocks. Notable upgrades have been witnessed, particularly in the autos sector, driven by improved margins. The energy sector has displayed robust numbers, while certain industrials stocks have outperformed expectations.

Financial sector insights:


Research Analyst at Citi Research, points out a mixed bag in the financial sector. While headline earnings show improvement, there have been downgrades, especially in certain materials. The focus shifts to banks’ performance, where challenges in deposit mobilization are noted. The research highlights an underwhelming deposit growth and moderation in loan growth, emphasizing the importance of driving growth through deposits for many banks.

Industrial sector optimism:

Research Analyst at Citi Research, provides insights into the industrial sector’s robust performance. Both large and small companies experienced strong order inflow in Q3, indicating a sustained recovery in capital expenditure in India.

Energy sector opportunities:

Ongoing earnings upgrades and positive recommendations for stocks like Bharat Petroleum Corp. and Hindustan Petroleum Corp. highlight the sector’s potential for further growth.

IT sector analysis:

While expectations are high for fiscal 2025 to outperform the current fiscal year, Citi Research maintains an opinion of underweight position on IT services in their India strategy.

Citi Research’s comprehensive analysis offers a glimpse into the robust performance of various sectors, setting the stage for a positive earnings growth outlook for Nifty. As the energy and industrial sectors shine, and challenges are navigated in banking and IT, investors can find valuable insights to navigate the dynamic landscape of the Indian market.