IANS New Delhi

Global brokerage firm Citi on Monday said that it expects the Nifty 50 index to touch 26,000 by December this year, a potential 15% upside from current levels. The brokerage firm also upgraded India's market outlook from 'Neutral' to 'Overweight,' citing strong growth potential, attractive valuations, and improving consumption trends. In its latest research report, Citi said that Indian equities offer a 'meaningful upside' amid 'less demanding' valuations. Brokerage firm's report outlines three key factors driving its positive outlook on India.

The first is the recent tax cuts announced in the Union Budget for FY26, which are expected to boost consumer spending and improve demand. The second factor is the recovery in public capital expenditure, with data showing strong government spending on infrastructure and growth initiatives. Lastly, Citi expects further easing in monetary policy. The RBI has already cut rates by 25 bps, and Citi anticipates another 50 bps of rate cuts in the coming months.