Markets bet on surge in earnings growth

Analysts are factoring in a 45% rise in corporate profits in next two years

India has the most aggressive earnings growth forecast among the world's major stock markets, and that is probably why the Sensex and the Nifty are continuously scaling new heights.

The combined net profit of the BSE Sensex and NSE Nifty is expected to rise around by 45 per cent in the next two years in constant currency terms, beating most other markets by a wide margin.

Bulls have raised their earnings expectations despite India Inc’s poor earnings growth in the last few years. The combined earnings (in dollar terms) of Nifty companies were down 0.8 per cent cumulatively in the