Citigroup raises Sensex target; top 20 stocks which can give upto 39% return in 12 months
Citigroup said that 2015 should be front-loaded with falling interest rates and back-loaded with actual economic recovery amid steady reforms.
By ET Online |
NEW DELHI: Global investment bank Citigroup, in its latest report, has raised the December-2015 Sensex target to 33000 from 31,000 earlier, translating into an upside of 15 per cent from Friday’s closing level of 28,693.99.
“We expect 2015 to be a good year. We raise the December 2015 market targets; the Sensex target to 33,000 and the Nifty target to 9,850, at 16x Dec16. Year 2015 should be front-loaded with falling rate gains, back-loaded with an actual economic/ investment recovery; and accompanied by steady regulatory/ execution reform,” the global investment bank said in a report.
According to the investment bank, India’s recently-renewed momentum reflects falling rate expectations. They expect the policy rates to fall by 75 bps in 2015 - with downside risks to inflation.
Citigroup sees the government-driven reform as a constant; a mix of execution and policy, backed by ongoing monetary/financial sector evolution which will set the tone for the markets.
While the India train has momentum, there are risks. There’re high ownership, eco/governmental expectations, key-man risks and valuations a little over mean, cautions Citigroup.
But more importantly, the rapidly falling commodity prices have started becoming too much of a good thing. India Inc will be benefitting the most as 15-20 per cent of earnings are linked to commodities (net), on falling global agri-prices (rural demand), and on the expected investment pickup (oil & gas, metals, mining - key investment drivers in the last cycle).
Citigroup lists their top ten large and mid-cap stocks which can deliver upto 39% return in 2015:
“We expect 2015 to be a good year. We raise the December 2015 market targets; the Sensex target to 33,000 and the Nifty target to 9,850, at 16x Dec16. Year 2015 should be front-loaded with falling rate gains, back-loaded with an actual economic/ investment recovery; and accompanied by steady regulatory/ execution reform,” the global investment bank said in a report.
According to the investment bank, India’s recently-renewed momentum reflects falling rate expectations. They expect the policy rates to fall by 75 bps in 2015 - with downside risks to inflation.
Citigroup sees the government-driven reform as a constant; a mix of execution and policy, backed by ongoing monetary/financial sector evolution which will set the tone for the markets.
While the India train has momentum, there are risks. There’re high ownership, eco/governmental expectations, key-man risks and valuations a little over mean, cautions Citigroup.
But more importantly, the rapidly falling commodity prices have started becoming too much of a good thing. India Inc will be benefitting the most as 15-20 per cent of earnings are linked to commodities (net), on falling global agri-prices (rural demand), and on the expected investment pickup (oil & gas, metals, mining - key investment drivers in the last cycle).
Citigroup lists their top ten large and mid-cap stocks which can deliver upto 39% return in 2015:
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