Citi Slashes Nifty Target Amid Middle East War Fears, Warns of Growth Squeeze

• Citi Research cut India's Nifty 50 year-end target to 27,000 from 28,500, citing escalating Middle East war risks.
• The brokerage lowered the Nifty target multiple to 19x from 20x 1-year forward price-to-earnings ratio.
• Three months of supply disruptions could cut India's FY27 growth by 20-30 bps, raise inflation by 50-75 bps, and add $25 billion to CAD.
• The U.S.-Israeli war is causing broader "quantity" disruptions in LPG, LNG, fertilisers, petrochemicals, and aluminium.
• Fertilisers, petrochemicals, and autos are among the worst-hit sectors; Citi downgraded autos to "neutral".