For equity investors, returns in 2015 will depend on companies’ earnings growth, the extent of fall in interest rates and progress on reforms, particularly in labour, land and power. The market’s valuations are at the upper end of its historical band. A Kotak report estimates earnings of BSE 30 index to grow from 9.9% in FY15 to 18.3% in FY16 and 15.8% in FY17. Similarly, for Nifty-50, profit is seen growing from 8.3% in FY15 to 16.8% in FY16 and 15.4% in FY17.
