Citi Raises Nifty Target to 28,000 by December 2027 on Earnings Optimism

Citi has raised its Nifty target to 28,000 by December 2027, implying nearly 12% upside, citing strong earnings, lower oil prices, and potential shifts in foreign investment away from AI themes. The brokerage upgraded its target from 26,000 and raised its valuation multiple to 18 times from 17 times. It expects around 15% annual earnings growth between FY26 and FY28, supported by healthy second-quarter corporate results and potential benefits from lower crude prices. Citi estimates a $10-per-barrel oil decline could cut India's current account deficit by 30-40 basis points and inflation by 50 basis points. It also flagged risks including Middle East geopolitics, consumption slowdown, and El Niño conditions.