Up to 10%! Citi Predicts the 10th Consecutive Year Grow for Indian Stock
TradingKey – Citi forecasts that India’s $5 trillion stock market is set to mark its 10th consecutive year of gains, fueled by recovering economic growth and robust corporate earnings.
Citigroup has set a target of 26,000 for the NSE Nifty50 index, representing a 10% increase from its December 31 close. As of early 2024, the index has already risen 5% beyond the bank’s previous forecast of 22,500.
“The Indian listed companies offer a diversified and robust outlook with strong EPS growth and relatively low risk. With policy support, the economy is expected to return to a 6.5% growth path by 2025, although a strong recovery in private investment remains challenging,” noted Citi strategist Surendra Goyal and colleagues.
Meanwhile, Morgan Stanley projects an 18% rise in India’s benchmark BSE Sensex by 2025, citing sustained retail buying activity outpacing the supply of new shares. Individual investors purchased a record 1.5 trillion rupees worth of stock on the National Stock Exchange of India Ltd. in 2024.
“Consistent buying at market lows by individual investors strengthens domestic inflows,” Goyal remarked. However, he cautioned that inflows from global funds may face headwinds due to the strengthening U.S. dollar.
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