Citigroup Raises BSE Sensex Target to 33,000

Citigroup on Monday raised BSE Sensex December 2015 target to 33,000 from 31,000. It expects 15 per cent upside from the Friday's close.

It also increased its target for Nifty to 9,850 from 9,240.

The bank says 2015 should be front-loaded with falling interest rates, back-loaded with actual economic recovery amid steady reforms and added that falling rates in a rising economy/earnings could fire the market more.

According to the Citigroup policy rates should fall 75 bps in 2015.

It also rejigged its model portfolio and is overweight on banks, energy, cement, pharmaceutical shares. The bank listed Adani Port and Special Economic Zone, Aurobindo Pharma among top large-cap picks.

Citigroup also likes Ashok Leyland, DB Corp among midcaps.

Copyright: Thomson Reuters 2014