Citi said it remains positive on the outlook for Indian equities after first-quarter earnings in India came in better than expected and the benchmark Nifty 50 traded at long-term average valuation levels. According to Sina Finance, Surendra Goyal and Vijit Jain wrote in a research note that BSE-100 constituents posted about 6% year-on-year EBITDA growth and about 9% year-on-year net profit growth, well above earlier expectations for flat growth or a slight decline.

Most sectors reported revenue growth above expectations, while some sectors saw margin pressure as expected. Citi added Axis Bank to its large-cap top picks list and maintained overweight ratings on financials, telecom, utilities, and healthcare.