Citi Group has upgraded Indian stocks to an overweight rating from neutral, citing meaningful upside potential amid less demanding valuations, as per the latest Equity Strategy report.
The report by Citi Group predicts that the NSE Nifty 50 Index could reach 26,000 by the end of December 2025, implying a 15% increase from the current trading levels.
On Monday, the Nifty 50 index fell by 0.95%, or 216.65 points, to 22,579.25 as of 2:48 pm, after touching an intraday low of 22,518.80.
According to Citi’s report, financials and healthcare sectors are among the key sectoral overweights, while consumer discretionary and utilities are underweights.
In contrast, Citi has downgraded Southeast Asia (ASEAN) to an underweight from neutral due to relatively weak EPS momentum and growth forecasts. The firm has also shifted its rating on Chile to overweight from neutral and Saudi Arabia to neutral from overweight.
The article was published on February 24, 2025.