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The investment bank explained that it expects Nifty/Citi Universe earnings growth at 8% and 7% year-on-year, respectively. Excluding energy, analysts see Nifty/Citi Universe earnings and EBITDA growth flattish and in the mid-single digits YoY, respectively.
The bank wrote, “We expect strong YoY growth in Autos, Energy, Pharma, and Utilities, while Banks, IT, Industrials, Materials, and Staples are expected to be subdued.”
Analysts believe markets will likely focus on consumption trends (both rural and urban) and bank NIMs/asset quality trends. Citi also states that elections continue to be a key investor focus.
The full year 2024 to 2026 Nifty EPS CAGR for Citi/Consensus is at 13% and 14%, with better than long-term average earnings revision trend.
The bank’s new March 2025 Nifty target is 23.9k, implying a potential 5% upside. The Nifty 50 is currently at 22,519.40 after declining just over 1% in the previous session.
