Citi has downgraded India's investment rating to 'underweight', highlighting persistent macroeconomic and geopolitical challenges as major concerns. The brokerage has set a target of 27,000 for the Nifty index, which represents an 11.7% upside from its recent closing value of 24,176. According to Citi, India's performance has been poor in their assessment model for some time, and the outlook for earnings per share (EPS) growth appears complicated due to rising commodity prices. Additionally, the brokerage's earnings growth forecasts for fiscal years 2027 and 2028 do not yet fully incorporate the potential impacts of the ongoing Iran War. Citi remains optimistic about sectors such as banks, telecom, defense, and pharmaceuticals, while expressing caution towards consumer goods, staples, and IT services.