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Citi downgrades India to underweight as geopolitical pressure weighs on earnings outlook
Economy
Published on 9 May 2026
Forecast still bakes in Iran War impact
Mumbai Citi has downgraded India to underweight, pointing to persistent macroeconomic and geopolitical risks and a softer earnings outlook. The brokerage still expects about 11.7% upside for the Nifty, targeting 27,000, but says its FY27-28 earnings forecasts factor in the impact of the Iran War. It prefers banks, telecom, defence and pharma.
- Citi cuts India rating to underweight due to macro and geopolitical headwinds
- Earnings projections for FY27-28 look weaker than before
- Nifty upside forecast remains 11.7%, with a 27,000 target
- Preferred sectors include banks, telecom, defence and pharma
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times