Citi downgrades India to "neutral," citing high valuations, but retains a 26,000 Nifty target and bullish sectoral picks.

• India’s 23x PE makes it Asia’s priciest market; Citi favors China, South Korea for cheaper valuations and growth.
• Positive on India’s 2026 macro growth outlook, foreign inflows potential tied to U.S. trade and consumption trends.
• Stays overweight on banks, non-banks, healthcare, telecom; underweight on IT, metals, and consumer staples sectors.