Citigroup tweaks model portfolio to be more defensive, cites

Citigroup tweaks model portfolio to be more defensive, cites elevated valuations


Citigroup tweaks model portfolio to be more defensive, cites elevated valuations
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Last Updated: Mar 12, 2021, 01:26 PM IST
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Synopsis
​Citi has a target of 14,800 on the Nifty by December this year which implies a minor downside from current levels.
Reuters
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MUMBAI: Citigroup Global Markets has tweaked its model portfolio to be more defensive given elevated valuations and multiple risks including high commodity prices. The firm has reallocated weightage from financials into defensives such as consumer staples, utilities, IT, and pharma. It has removed IndusInd from the portfolio after outperformance in the last few months.
"Continued rise in commodity prices + elevated FY22 estimated consensus growth expectations with valuations at over 21 times FY22 estimated EPS is the risk," said Citi's Surendra Goyal and Vijit Jain.

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