Citi sees 12% Nifty earnings growth in FY17, Sensex target @ 30K

Surendra Goyal of Citi says Q3 earnings growth for BSE 100 is tracking at 6 percent YoY, ahead of Citi estimates.

He expects Sensex/Nifty earnings growth of 10/12 percent in FY17 and 15/18 percent in FY18, respectively. He remains constructive and maintains Sensex target of 30,000.

Meanwhile, Nigel Tupper of Bank of America Merrill Lynch says history suggests Asia tends to be one of the best performing regions in the world when the Global Wave is rising.

Asia has not outperformed global equity indices in the recent rally, but there are a number of positive catalysts for Asia equities, he says.

The Global Wave has improved for the eighth consecutive month, the EPS forecast of Asia has been positively correlated to the Global Wave since 1988, and Asia is trading below long-term average valuation levels relative to other regions of the world, Tupper feels.