Nifty target raised to 28,000 from 26,000, says Citi; here's why
A $10 decline in oil prices improves the current account deficit by 30-40 basis points (bps), lowers inflation by about 50 bps and boosts Nifty earnings per share (EPS) by about 2 per cent, Citi said.
- Nov 9, 2026,
- Updated Nov 9, 2026 8:59 AM IST
Citi has raised its target for the Nifty to 28,000 from 26,000 earlier. The foreign brokerage cited a decent earnings outlook, lower oil price risks and potential flows into non-AI assets following the US midterm elections. The fresh target suggests 12 per cent potential upside over the prevailing level of 24,986.40.
Citi expects Nifty earnings to grow at a compounded annual rate of 15-16 per cent over FY26-FY28, with September quarter results sustaining the momentum seen in the June quarter, Bloomberg reported, citing the foreign brokerage.
Lower crude prices could support both the macroeconomic backdrop and corporate earnings. A $10 decline in oil prices improves the current account deficit by 30-40 basis points (bps), lowers inflation by about 50 bps and boosts Nifty earnings per share (EPS) by about 2 per cent, Citi said.
It has extended its forward estimates to December 2027 from September 2027 and raised the multiple for India's equity benchmark to 18 times from 17 times.
A more measured pace of AI spending following the US midterm elections could encourage a rotation into non-AI assets, potentially benefiting Indian equities, Bloomberg reported, citing Citi. “Over the past two years, AI has crowded out almost everything else. Our analysis suggests a 100bp increase in India active weight could drive $12 billion of inflows; combined with resilient domestic flows, creating a supportive backdrop,” it said.
Citi said some industrial stocks exposed to the data centre theme may continue to see near-term pressure.
Key risks include volatility in the Middle East, a slowdown in consumption and the impact of AI on employment.
Citi has raised its target for the Nifty to 28,000 from 26,000 earlier. The foreign brokerage cited a decent earnings outlook, lower oil price risks and potential flows into non-AI assets following the US midterm elections. The fresh target suggests 12 per cent potential upside over the prevailing level of 24,986.40.
Citi expects Nifty earnings to grow at a compounded annual rate of 15-16 per cent over FY26-FY28, with September quarter results sustaining the momentum seen in the June quarter, Bloomberg reported, citing the foreign brokerage.
Lower crude prices could support both the macroeconomic backdrop and corporate earnings. A $10 decline in oil prices improves the current account deficit by 30-40 basis points (bps), lowers inflation by about 50 bps and boosts Nifty earnings per share (EPS) by about 2 per cent, Citi said.
It has extended its forward estimates to December 2027 from September 2027 and raised the multiple for India's equity benchmark to 18 times from 17 times.
A more measured pace of AI spending following the US midterm elections could encourage a rotation into non-AI assets, potentially benefiting Indian equities, Bloomberg reported, citing Citi. “Over the past two years, AI has crowded out almost everything else. Our analysis suggests a 100bp increase in India active weight could drive $12 billion of inflows; combined with resilient domestic flows, creating a supportive backdrop,” it said.
Citi said some industrial stocks exposed to the data centre theme may continue to see near-term pressure.
Key risks include volatility in the Middle East, a slowdown in consumption and the impact of AI on employment.