Corporate India finding it tough to adjust to govt’s paradigm shifts!

Given the weak realty sector, mounting NPAs and global instability, the Sensex could fall to as low as 22,000 although the FY 16-end fair value is 28,000.

The twin effect of the December US Fed rate hike and an ailing Chinese economy - both headed in opposite directions – is likely to make markets volatile.  Given the weak realty sector, mounting NPAs and global instability, the Sensex could fall to as low as 22,000 although the FY 16-end fair value is 28,000.  Like the earlier six quarters, this one has not seen significant growth. Although falling global commodity prices have helped the Sensex EPS look up to some extent, corporate India is finding it tough to adjust in line with the new government’s paradigm shifts pertaining to consumption and capex cycles which has adversely effected EPS growth.