Citigroup adopts a more positive outlook on India’s stock market following a robust first quarter driven by stronger-than-expected earnings and valuations nearing long-term averages, signalling potential for continued growth.
Citigroup is taking a more constructive view of India’s stock market after a stronger-than-expected first quarter earnings season and valuations that, in its view, are close to long-term averages. Analysts Surendra Goyal and Vijit Jain said the latest round of results pointed to a broad recovery, with the BSE-100 posting about 6% year-on-year EBITDA growth and net profit rising roughly 9%, well ahead of expectations that had called for little or no growth.
The bank said most sectors delivered revenue growth above forecasts, although some industries still faced the margin pressure that investors had been bracing for. Citigroup also added Axis Bank to its list of preferred large-cap shares and kept an overweight stance on financials, telecoms, utilities and healthcare, signalling confidence that earnings momentum can continue beyond the first quarter.
The call comes as Citigroup itself has just posted its strongest quarterly revenue in a decade. The bank reported first-quarter 2026 revenue of $24.6 billion and earnings per share of $3.06, topping Wall Street expectations, while net income rose 42% to $5.8 billion. The company said four of its five core businesses delivered double-digit revenue growth, with Services and Markets standing out. That backdrop helps explain why Citi is sounding more optimistic about overseas opportunities, even as Indian equities have already moved back to long-run valuation norms.
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