Markets factoring in earnings growth of 15%, GDP can hit 9% by 2023: UBS

Indian equity markets that are trading at 18 times price-to-earnings (PE) are factoring in earnings growth of 15 per cent over the medium term and remain the big ‘growth hope’ story for investors, say analysts at UBS Securities in an ‘India Strategy Report’ report led by Gautam Chhaochharia, their head of India research.

This growth in corporate earnings, UBS believes, can come about if the real gross domestic product (GDP) grows at 8 per cent-plus. This, UBS says, is achievable as manufacturing activity shifts away China.

“Markets can have further upside if our blue-sky scenario plays out. UBS Evidence Lab Surveys