Citi Predicts Nifty to Hit 28,500 by 2026, Unveils Top Investment Themes

• Citi sets Nifty target of 28,500 by December 2026, implying about 10% upside based on 20x one-year forward P/E.
• Brokerage expects stronger risk-reward in 2026, citing India's sharp underperformance and underweight EM portfolios.
• Key drivers include stabilizing earnings, potential global AI trade broadening, and a possible US-India trade deal.
• Preferred overweight sectors are Banks, Telecoms, Autos, Healthcare, and Defence, with improving consumption and credit growth.
• Despite recent market volatility and FII swings, steady domestic inflows have cushioned valuations.

Why It Matters: Citi projects Nifty to reach 28,500 by 2026, driven by improving fundamentals and strategic sector picks.