Companies are squeezing more profits from their operations relative to the capital they put to work, the highest now since 2011. Profit after tax relative to capital employed came in at 10.47 per cent in September, shows data from the Centre for Monitoring Indian Economy (CMIE), higher than the 8.41 per cent seen in September last year. This is the highest since March 2010.
The brokerage said it expected corporate earnings to turn around.
The brokerage, which previously had a target of 31,000, cited global growth concerns for revision in the target.
Deutsche Bank expects the Sensex to climb only 8% in 2017 to 29,000, and expects high volatility.
Further outperformance hinges on pickup in industrial activity, buying by local investors.
Continued outflows amid moderation of domestic investments are a concern
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