Credit Suisse Wealth Management sees mid-teen growth in Nifty earnings

Within the markets segments, they do not forecast a major underperformance by the mid-caps in 2020 given the valuation comfort

Despite a likely 100 basis point (bps) cut in growth forecast going ahead, earnings for Nifty Index in 2020 could settle in mid-teens as compared to a consensus estimate of around 26 per cent for financial year 2020-21 (FY21), wrote Jitendra Gohil, Head of India Equity Research, Credit Suisse Wealth Management in a recent co-authored note with Premal Kamdar, their equity research analyst.

A large part of this growth, they feel, will come from lower provisioning needs of the financials, which we estimate could contribute over 80 per cent to the incremental growth in Nifty Index earnings.

“With the current tariff hike