Expect no gains for Nifty over next year as stocks get expensive: Citi

The rebound has been helped by foreign investors, who have bought a net $4 billion worth of Indian stocks this year

India’s major stocks are unlikely to gain much over the next year as the inflow of funds amid global coronavirus-related stimulus and easy money policies has made them too expensive for now, according to Citigroup Inc.

“Foreign flows are supportive but on the domestic side, we have seen things slowing down a bit,” Surendra Goyal, Citi’s head of India research, said in an interview this week. “Liquidity does act as a support to the market but valuations are on the higher side, particularly in the backdrop of the pandemic.”

The brokerage has a September 2021 target of 11,000 for the NSE Nifty