Citigroup Global Markets has cut its March 2020 Sensex target to 39,500 from 41,000 to factor in downgrades in corporate earnings growth forecasts. This is the first cut in Sensex target by any brokerage since the recent market decline began. Indices have fallen 7% since the July 5 budget as the government increased tax on the super-rich and there was lack of stimulus for the economy. The revised target on Sensex would imply 6.7% upside from the current level of 37,018. Citi is cautious on the Indian market as valuations are not cheap.