Citi Neutral on India, Awaits Earnings Upgrades; Bullish on US Equities

• Citi maintains a 'neutral' stance on India, citing underperformance over the past 12 months and awaiting earnings revisions for potential allocation shifts.
• Drew Pettit, Director at Citi, finds other emerging markets like Korea and Taiwan more attractive due to AI-linked stocks at reasonable valuations.
• Citi remains constructive on US equities, forecasting a volatile but positive year with an S&P 500 year-end target of 7,700, driven by strong fundamentals and earnings growth.
• Pettit emphasizes fundamental resilience and rising earnings per share (EPS) as the core drivers for the optimistic US outlook, despite geopolitical and rate volatility.
• Bond market volatility, especially from Japanese government bonds, is flagged as a potential risk, though stronger economic growth could offset it.

Why It Matters: Citi is neutral on India, awaiting earnings upgrades, but bullish on US equities due to strong fundamentals and EPS growth.