SENSEX at 32200 by March 2018 - CITI

Sensex at 32200 by March 2018 - CITI



GST, STRONG DOMESTIC FLOWS POSITIVE Financials is Citi's biggest overweight sector, underweight on healthcare & IT Citig roup Global Markets has rolled forward its Sensex target to 32,200 by March 2018 as against the earlier target of 31500 for December 2017.

The firm said that implementation of the Goods and Services Tax (GST), strong flows from domestic mutual funds and foreign investors are positives, but a lot seems to be getting priced in with valuations at 18 times estimated FY18 earnings.

“Citi India sentiment indicator still remains elevated implying limited upside over the next 12 months,“ said the firm in a note on Thursday. 

Citi's March 2018 Sensex target implies an upside of 3.4% from Sensex's Thursday closing level of 31137.59.

The brokerage also said that while flows from mutual funds are strong, foreign investors are still likely to dictate the market's direction given their ownership of over 20%.

The brokerage firm said it has lowered active weight in healthcare space given the challenges faced by the sector. Financials remains Citi's biggest overweight sector while the brokerage remains underweight on consumer and information technology services sector.

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