Mumbai: Citigroup has tweaked its model portfolio to be more defensive given elevated valuations and multiple risks, including high commodity prices. The firm has reallocated weightage from financials to defensives such as consumer staples, utilities, IT, and pharma. It has removed IndusInd Bank from the portfolio after outperformance in the last few months.
“Continued rise in commodity prices + elevated FY22 estimated consensus growth expectations with valuations at over 21 times FY22 estimated EPS are the risks,” said Citi’s Surendra Goyal and Vijit Jain.
Citi has a target of 14,800 on the Nifty by December this year, which implies a minor downside from current levels. The Nifty closed at 15,030.95 on Friday.
Citigroup tweaks model portfolio to be more defensive, cites elevated valuations
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Last Updated: Mar 12, 2021, 01:26 PM IST
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Citi has a target of 14,800 on the Nifty by December this year which implies a minor downside from current levels.
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MUMBAI: Citigroup Global Markets has tweaked its model portfolio to be more defensive given elevated valuations and multiple risks including high commodity prices. The firm has reallocated weightage from financials into defensives such as consumer staples, utilities, IT, and pharma. It has removed IndusInd from the portfolio after outperformance in the last few months. Continued rise in commodity prices + elevated FY22 estimated consensus growth expectations with valuations at over 21 times FY22 estimated EPS is the risk, said Citi s Surendra Goyal and Vijit Jain.
Union Budget 2021: Which are the stocks to watch
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Union Budget 2021: Which are the stocks to watch
Bloomberg / Updated: Jan 28, 2021, 13:36 IST
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NEW DELHI: India’s annual budget will be unveiled on February 1, with expectations that the government will boost spending to reboot an economy that’s forecast to contract the most this year since 1952. Here’s a guide to those stocks that may be most affected by the spending plan.
Analysts believe that tax cuts, higher capital expenditure and greater spending on infrastructure projects which tend to support low-income earners hold the key to unlocking demand for goods and service.
Budget 2021: As India Unveils Budget, Watch Farm Stocks, Automakers, Banks Budget 2021: As India Unveils Budget, Watch Farm Stocks, Automakers, Banks Analysts believe that tax cuts, higher capital expenditure and greater spending on infrastructure projects which tend to support low-income earners hold the key to unlocking demand for goods and services
Rural India, where most of the nation s 1.3 billion citizens live, has been a relatively bright-spot
The annual budget will be unveiled on February 1, with expectations that the government will boost spending to reboot an economy that s forecast to contract the most this year since 1952. Here s a guide to those stocks that may be most affected by the spending plan.
Synopsis
Previous budgets have seen Indian equity investors deterred by levies including capital gains taxes and a surcharge subsequently rolled back that especially hit foreign funds.
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With India’s S&P BSE Sensex Index trading close to a peak, there’s not much of a safety margin for stock investors.
India’s annual budget will be unveiled on February 1, with expectations that the government will boost spending to reboot an economy that’s forecast to contract the most this year since 1952. Here’s a guide to those stocks that may be most affected by the spending plan.