ICICI Sec sees policy changes driving double-digit growth in next 3 years

That's prompted fund managers to warn that valuations are too high and led to lowering in earnings estimates this year from record levels

Indian equities will see “double-digit” earnings growth for the next three fiscal years as changes to government tax and bad-loans policies allow more cash to be channeled into Asia’s third-largest economy, according to the nation’s largest brokerage.

Rules for tackling soured debt and a nationwide sales tax would increase savings and lower the cost of capital for companies, helping drive the pace of earnings growth to between 10 to 15 per cent for each of the next three years, Shilpa Kumar, chief executive officer of ICICI Securities Ltd., said in an interview in Singapore.

India’s benchmark S&P BSE Sensex index has seen