Citi raises Nifty target to 28,000 by 2027, sees $12 billion inflows

Citi Research has raised its Nifty 50 target to 28,000 by end-2027, implying 12% upside, citing easing oil prices, stronger foreign inflows and a possible rotation away from AI-heavy investments. The brokerage also sees scope for $12 billion in foreign inflows as global investors increase their exposure to Indian equities. The target follows a 9% rally in Nifty over one week, with Citi raising its price-to-earnings multiple to 18x from 17x. Foreign investors have bought over $4.1 billion of Indian shares in November, the biggest monthly inflow since September 2024, aided by US midterm election results and hopes for lower oil prices. Citi noted that a $10 per barrel drop in oil prices could improve India's current account deficit by 30-40 basis points and inflation by 50 basis points. The brokerage previously expected Nifty at 26,000 by September 2027.