Citi ups Sensex target to 28,800; constructive on macro,earnings

Moneycontrol BureauAfter the recent rally, the Indian market is now trading at roughly 16.5 times one-year forward earning, which is slightly higher than the 10-year mean, says Surendra Goyal, Head of Research at Citi in a note to clients.The brokerage has raised its Sensex target to 28,800 from 27000 earlier. The revised target implies 16 times estimated earnings for 2017-18.Citi is ‘constructive’ on the Indian market for the following reasons(Excerpts from the note)* Macro indicators showing signs of recovery * Good Q4; Sensex earnings to recover (around 14 percent growth in FY17E) * Return on Equities bottoming out--should improve. India earnings/ROEs lookattractive in the emerging market context