Cautious on EMs after 20% rally, ups Sensex target to 30k: Citi

After meeting investors in US over the past couple of weeks, Surendra Goyal of Citi says while most investors still like India in the emerging markets (EM) context, the mood on EMs overall is generally cautious post the rally of 20 percent since February.

"India's premium to EM remains in-line with 10-year average - we remain constructive and raise Sensex target to 30,000," Goyal says.

Meanwhile, Ajay Kapur of Bank of America Merrill Lynch says the brokerage house has re-iterated tactically neutral view established last month and remained structurally bullish.

"There are many central bank meetings and we will wait to see lower levels of 'Risk-Love' before we get tactically bullish again," he says.

He feels after over-predicting US/global bond yields for the past 15 years, consensus is finally capitulating to a lower interest rate world.

"We were concerned that the then consensus bond-bullishness could reverse if we see coordinated fiscal policy or hawkish central banks. In that scenario, bond proxies, high dividend stocks, utilities, staples and EM debt would come under pressure. That seems to be happening recently," Kapur says.