Citigroup raises Dec 2015 Sensex target to 33,000

Foreign brokerage continues to be bullish on the Indian market going into 2015. "We expect 2015 to be a good year," said Citi in its India Equity Strategy report, raising the BSE Sensex target to 33,000, an upside of 16 per cent from current levels. The National Stock Exchange's Nifty target has also been revised upwards to 9,850. The report also expects the Reserve Bank of India to lower rates by at least 75 basis points during the course of the year. "2015 should be front-loaded with falling rate gains, back-loaded with an actual economic/investment recovery, and accompanied by steady regulatory/execution reform," said the report authored by analysts Aditya Narain and Jitendra Tokas.

A seamless transition; falling rates to a rising economy/earnings could fire the market more, it added.

With the downside risks to inflation, the analysts believe that the rate-cut could go higher than the expected 75 basis points.

However, corporate earnings are only expected to catch up by the middle of 2015 because of low visibility on near-term loan growth, order-book and investments, the report said. However, markets have already factored this in, the report said.

"The market is front-ended this recovery, and post rates gain, will wait for it," the report said.