Citigroup’s brokerage arm lowered its stance on Indian equities to “neutral” from “overweight,” saying that earnings growth in Asia’s third-largest economy no longer looks exceptional given still-elevated valuations. The move reverses the bank’s February upgrade, when it argued that India’s equity risk-reward had improved after a pullback. At the same time, Citi raised China and South Korea to “overweight,” pointing to more favourable earnings-per-share revision trends and comparatively attractive valuations. Strategists added that renewed investor interest in China’s technology sector—up more than 20 % so far this year—and resilient Korean exporters underpin the call. While Citi acknowledged that India’s macroeconomic backdrop remains solid, it said the benchmark Nifty 50’s 15 % rebound from April lows has left limited room for outperformance. By contrast, the bank expects better relative returns from Chinese and Korean stocks as corporate profits recover and tariff headwinds are already reflected in prices.