Citi remains constructive on Indian equities and has set a June 2027 target of 26,800 for the Nifty 50, based on an 18x one-year forward price-to-earnings multiple. The brokerage is favouring financials, telecom, healthcare and utilities, while remaining underweight on IT services, staples and metals.
Earnings outlook
According to Citi, BSE100 EBITDA and PAT growth stood at 6 per cent and 9 per cent y-o-y, respectively, and were well above preview estimates. Top-line growth excluding energy was 14 per cent y-o-y, ahead of estimates.
The brokerage noted margin pressure across the consumer, industrial and financial sectors. However, FY27/FY28 earnings estimates have remained unchanged since July.
Key drivers, risks
Citi identified GST tailwinds, wage hikes and credit growth as positive drivers for equities. At the same time, it flagged AI productivity impact and elevated crude costs as key risks.
Citi remains constructive on financials, telecom, healthcare and utilities, while maintaining an underweight stance on IT services, staples and metals.
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Published on August 18, 2026
