See $15 bn annual DII inflow, 15% earnings growth in FY17: CLSA

Mahesh Nandurkar, CLSA says corporate earnings estimates continue to have downside risk but he expects the pace of downgrades to slow down.

According to him, earnings growth will improve from 5-7 percent over the past five years to about 15 percent in CY16-FY17. The low base will help reported earnings growth from December 2015 and better revenue growth will drive operating leverage leading to corporate margin improvement, he says.

He feels a large part of commodity gains are already priced in.

He expects USD 15 billion annual inflows from domestic institutional investors. According to him, a potential pull out by oil money is a risk to FII flows.

"December 2016 Sensex target is 29,000 implying a 12 percent upside," Nandurkar says.