Citi has said Q1 earnings were better than expected, with details looking healthy across sectors. On that basis, it has raised its target for the Nifty to 26,800 for June 2027, from 26,000 for March 2027, as the brokerage sees a stable outlook supporting Indian equities. Its data shows that 44 of 99 BSE 100 companies beat revenue expectations, while EBITDA was ahead for 50 companies and PAT beat estimates for 58.
Sectorally, Citi is Overweight on financials, telecom, healthcare and utilities, while it remains Underweight on IT services, consumer staples and metals. Axis Bank has also been added to Citi's top large-cap picks.
The picture was weaker in some other pockets. Industrial companies saw EBITDA beats in five of 12 companies, while seven missed expectations. In healthcare, three of seven companies beat EBITDA estimates and three missed. Consumer discretionary had eight PAT beats against three misses.
Citi's Stock Calls
Citi's estimate changes point to a stronger earnings outlook for several healthcare and financial names. Laurus Labs has the biggest FY28 estimate upgrade among the stocks highlighted, at 41%, followed by Info Edge at 26%, Divi's Laboratories at 15% and Gland Pharma at 16%. Citi also raised its FY28 estimate for Granules India by 278% and Nuvoco Vistas by 33%.
The brokerage expects earnings to remain resilient as the impact of GST cuts feeds through demand. It also flagged upcoming public-sector wage hikes and continued government spending as potential supports for consumption.
Citi highlighted that it is watching what happens after the GST benefits fade, with demand resilience becoming a key test. It also highlighted the impact of AI-driven global investment on end-use demand and pointed to foreign investor outflows from India as an issue worth monitoring.
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