Citigroup Global Markets has dropped Tata MotorsNSE 3.07 %, Shriram Transport, IndusInd BankNSE -1.06 % and Sun TV NetworkNSE 1.55 % from its model portfolio. While Citi has streamlined the portfolio by cutting the number of stocks in it to 34 from 38 earlier, it has replaced Crompton Consumer with HavellsNSE -0.08 % and DaburNSE -1.50 % with TitanNSE 1.55 %. Citi has maintained overweight stance on financials, cement and healthcare and is underweight on consumer staples and materials (excluding ..
Citi remains cautious on the Indian market despite the 5 per cent correction since the end of April.
The firm said recent production and consumption trends have both looked weak, implying risks to earnings in the current financial year, said Citi. Earnings in the quarter ended March have grown at 32 per cent from the year ago period, but yet it is below the expectations of 41 per cent, said Citi.
“FY19 is likely yet another singledigit YoY growth fiscal and we expect downgrades to persist in FY20, given high dependence on decline in credit costs in financials and growth risks in consumer sectors,” said Citi.
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