Corporate earnings likely to turnaround in 2016: Deutsche Bank

Abhay Laijawala, Deutsche Bank says as the market heads into 2016, investor optimism over the policy and macro environment has been replaced by a more conservative realism focused on earnings recovery as the most determining market catalyst.

While there is understandable investor skepticism on an earnings recovery, he believes that corporate earnings are likely to turnaround in 2016, benefitting from an urban consumption recovery, a positive multiplier impact of government's push on public investments, a possible reflation in WPI and favourable base effect.