HDFC Bank, L&T, Sun Pharma: Citi's Top Picks For 2024

Candle stick and line charts for a stock (Source: Freepik)

Written by
Ananya Chaudhuri
Written by

Ananya Chaudhuri

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Indian equities are expected to continue their stellar 2023 performance into the current year with the NSE Nifty 50 likely to touch 22,500 by end-December 2024, according to Citi Research.

The research firm forecasts the benchmark Nifty's earnings per share to be 14% by the next financial year. In 2024, it prefers large caps over mid and small caps.

Strong domestic inflows may continue to aid mid and small caps' performance, but the risk-reward ratio is seen better in large caps, Citi said.

In large caps, Citi is 'overweight' on public sector banks, utilities, defence and infrastructure.

Looking Back At 2023

Investors preferred riskier assets like emerging markets' stocks to developed markets' equities, which helped Indian equities post their best performance in 2023, according to Citi.
Indian equities gave returns equal to those of developed markets and outperformed their peer markets.
In the latter part of the year, domestic inflows continued to support Indian benchmark indices' performance.
In sectors, auto, healthcare and industrial outperformed benchmark indices, while financials, utilities and metals underperformed.
Net inflows from foreign institutional investors sharply rebounded last year compared to 2022. India received a net FII inflow of $20 billion in 2023.