Citi has expressed a positive outlook on the Indian stock market, driven by better-than-expected first-quarter earnings and the Nifty 50 index trading near its long-term average valuation. Analysts Surendra Goyal and Vijit Jain noted in a report that the aggregate EBITDA of BSE-100 index constituents grew by approximately 6% year-on-year, while net profit after tax rose by about 9% year-on-year. This performance significantly exceeded the earlier expectations of zero growth or a slight decline.
The majority of sectors reported revenue growth that surpassed forecasts, although some industries faced profit margin pressures as anticipated. In light of these developments, Citi has added Axis Bank to its list of top large-cap picks.
The firm maintains an overweight rating on the financial, telecom, utilities, and healthcare sectors.
Comments