Citi remains constructive on the Indian stock market, highlighting that post-correction valuations for large-cap stocks are reasonable. The brokerage notes that key macroeconomic drivers for consumption growth—including direct income tax cuts, a policy rate cut, declining inflation, and recovering capex growth—are improving.
In terms of sector preferences, Citi has a Key Overweight stance on banks, telecom, and healthcare, expecting these sectors to benefit from economic tailwinds. On the other hand, IT, metals, and consumer discretionary stocks are underweighted due to potential near-term challenges.
The brokerage has reinforced its Buy ratings on HDFC Bank, Kotak Mahindra Bank, Maruti Suzuki, Endurance Technologies, HDFC Life, Torrent Pharma, and MakeMyTrip, citing strong fundamentals.
Citi has set a Nifty 50 target of 26,000 for December 2025, implying a 13% upside potential from current levels.
Disclaimer: The views expressed are those of the brokerage firm and not of Business Upturn. Investors are advised to conduct their own due diligence before making any investment decisions.