Stating that India’s Gross Domestic Product (GDP) growth and risk appetite may lag expectations, Citigroup Global on Thursday cut India’s rating from ‘Neutral’ to ‘Underweight’.
Citigroup sees BSE Sensex rising by 7% more from current levels in 2013, with a target of 20,800. “Indian market will be led by earnings per share (EPS) growth in 2013, not PE expansion,” the bank said. More government reform action, along with easing inflation and falling interest rates should support equities, added the bank.
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