Global brokerage firm Citi has set this year’s target for Nifty at 26,000. The brokerage firm says that by the end of this year, Nifty may increase by 10 percent from the current level. According to Citi, inflation may decline to 4.2 percent in fiscal year 2026, which will create scope for interest rate cuts by the Reserve Bank (RBI).
Citi Strategist Surendra Goyal said, ‘India’s EPS growth outlook is strong and low risk. Diversification among the listed companies here is also sufficient. However, Citi does not expect any recovery on the private investment front. However, Citi remained positive about India even during the selling by foreign investors in the market during October-November 2024. Citi had said in October, ‘The out-performance of the Indian market could be quite significant in a year or two. In our view, Indian equities will remain bullish on strong macro/growth outlook and strong domestic inflows.
Foreign Portfolio Investors (FPIs) had sold shares worth Rs 1.15 lakh crore during October-November and due to this the Nifty 50 index had reached the correction zone. There were many reasons for this selloff, such as high valuations, weak results, improvement in the Chinese market, etc. However, domestic investment remained strong during this period and acted as a counterbalance to foreign selling.
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