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