Citigroup downgrades India to 'underweight'
Reuters Market Eye - Citigroup downgrades India to "underweight" from "neutral", as part of its emerging markets review, saying a rebound in economic growth, corporate risk appetite and the investment cycle may not be as strong as current expectations.
Citigroup adds the "ongoing political battles and the upcoming 2014 elections may make this year noisy."
However, more government reform action, along with easing inflation and falling interest rates should support equities, added the bank.
Citi says Indian shares can at best rise 7 percent more from present levels.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
Trending On Reuters
The government sold a 10 percent stake in state-run behemoth Coal India on Friday, in a bumper sale which saw demand from institutional investors marginally exceed supply, giving a welcome boost to the government's faltering divestment drive. Full Article