Corporate earnings in India have been reset in line with the nominal growth rate and while the bank bad loan clean-up and commodity stabilization will help things improve from here on, the 15-17% growth in earnings that used to be the norm is history and investors should prepare for around 11-12% growth in the medium term, Maneesh Dangi, co-chief investment officer, Birla Sun Life Asset Management Co. Ltd, said in an interview.
In its first two years, Prime Minister Narendra Modi’s government has done a good deal by plucking some low-hanging fruits and taking some hard steps to clear the slate before writing a new story, Dangi said.
