Citi has raised its Nifty 50 target to 28,000 for December 2027, from 26,000 for September 2027. The new level implies about 12% upside from Friday’s official close of 25,030.35 on the National Stock Exchange.
MoneyTurkey Research Desk | 9 November 2026
Key points
- Citi raised its target multiple for the Nifty 50 to 18 times earnings from 17 times and rolled the horizon forward to December 2027, according to its India Equity Strategy note as reported by ET Now.
- It expects Nifty earnings to compound at 15% to 16% a year over FY26 to FY28, in line with consensus, CNBC TV18 reported.
- Citi estimates a 100 basis point rise in India’s active weight in emerging-market portfolios could bring about $12 billion of foreign inflows.
The call
Citi said September-quarter results built on the momentum of the June quarter despite high commodity prices. It added Bajaj Finance to its preferred stocks, citing visibility of more than 25% growth, and kept its preference for industrial companies tied to power, manufacturing and infrastructure spending, ET Now reported.
The note landed the same day HSBC upgraded Indian equities to overweight from neutral. The Nifty 50 rose about 8.6% last week, from 23,053.10 to 25,030.35 based on National Stock Exchange closing data, its best week in nearly six years.
Why oil and flows matter
Citi said a $10 a barrel fall in oil would cut India’s current account deficit by 30 to 40 basis points, lower inflation by about 50 basis points and lift Nifty earnings per share by about 2%.
On flows, India’s weight in the MSCI Emerging Markets index and active funds’ positioning against it are both near multi-year lows, Citi said. It noted more than $6 billion of inflows into Indian equities over the past three weeks. A slower pace of AI capital spending after the US midterms could push money toward non-AI markets such as India, the bank added.
Risks
Citi flagged three risks to the call: a spike in oil prices, a slowdown in consumption, and the effect of AI on employment.
What to watch
- Foreign portfolio flows into Indian equities after the HSBC and Citi calls
- Oil prices, given Citi’s earnings sensitivity
- December-quarter results against the 15% to 16% earnings path
For information only. Not investment advice.
