Nifty's earnings growth to take off from September quarter, says CLSA

In the past five years, Nifty earnings growth has increased at a measly 2% CAGR

Expect Nifty earnings growth to move to double digits from the September 2017 quarter onwards, foreign brokerage CLSA has said. The brokerage said the macroeconomic environment is improving as “disruptive forces” such as demonetisation, goods and services tax (GST) and bad loan recognition are fading. 

In the past five years, Nifty earnings growth has increased at just two per cent compounded annual growth rate (CAGR). The low base offers a good opportunity to “launch healthy” year-on-year (y-o-y) earnings growth, the CLSA said.

The Indian markets have rallied sharply close to 20 per cent this year. As earnings growth is yet