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Citi expects Sensex to hit 20,800 by Dec 2013

Source : REUTERS
Last Updated: Fri, Nov 30, 2012 09:47 hrs
People watch news channel displayed on screen on facade of Mumbai Stock Exchange building as India's Finance Minister Palaniappan Chidambaram presents federal budget

India in 2013 will be cacophonous; a mix of politics, impending elections, reforms and economic revival expectations, Citigroup said in report.

The investment bank expects Sensex to reach 20,800 by December 2013, based on premise of 9.6/12 percent earnings growth for FY13/FY14 and a valuation multiple of 14.5 times - a slight discount to its 15-16 times longer-term average.

Citi says the cyclical/risk trade that worked in 2012 should continue to be the preferred one for 2013, thereby maintaining its 'overweight' stance on banks, consumer discretionary, capital goods, IT stocks, while raising telecom to 'overweight' as well.

The bank remains 'underweight' on consumer staples, utilities, energy and materials.

Citi prefers Axis Bank , ICICI Bank , Infosys , Maruti Suzuki India and Bharti Airtel among large-cap stocks, while its midcap top picks are Apollo Hospitals Enterprise , Idea Cellular , Sun TV , LIC Housing Finance and Exide Industries .




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