Faster earnings could propel Sensex ahead of Dow Jones

Sensex companies' earnings expected to grow by 27 per cent in current calendar year

The recent rally notwithstanding, the 30-share Sensex is trailing the returns of the US' Dow Jones Industrial Average in dollar terms over three years.

However, Dalal Street is catching up fast and analysts expect the Sensex to beat the Dow by the end of the calendar year, given the aggressive earnings estimates for Indian markets. 

The Indian benchmark has given a compound annual growth rate (CAGR) of 6.9 per cent in three years, lower than the 8.1 per cent given by the Dow Jones during the period, in constant currency terms.

According to Bloomberg consensus estimates, underlying earnings per share