Business | Fri Nov 30, 2012 3:06pm IST

Citi expects Sensex to hit 20,800 by Dec 2013

Reuters Market Eye - 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 (AXBK.NS), ICICI Bank (ICBK.NS), Infosys (INFY.NS), Maruti Suzuki India (MRTI.NS) and Bharti Airtel (BRTI.NS) among large-cap stocks, while its midcap top picks are Apollo Hospitals Enterprise (APLH.NS), Idea Cellular (IDEA.NS), Sun TV (SUTV.NS), LIC Housing Finance (LICH.NS) and Exide Industries (EXID.NS).

Top India News

Reuters Showcase

Auto Sector

Auto Sector

Ford aims to triple exports from India with $1 billion plant  Full Article 

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Insurance Sector

Insurance Sector

Australia's IAG to up stake in joint venture with SBI  Full Article 

Accenture Results

Accenture Results

Accenture raises revenue growth forecast for second time  Full Article 

GAIL's Plans

GAIL's Plans

GAIL seeking 7 LNG cargoes from Oct. 2015-Dec. 2016 - tender document.  Full Article 

Eyeing Pininfarina

Eyeing Pininfarina

Pininfarina confirms Mahindra interest, says no deal yet  Full Article 

SH Kelkar IPO

SH Kelkar IPO

SH Kelkar files prospectus for IPO, seen at around $100 mln  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage 

X