Valuations now 'reasonably attractive' in India ahead of important year

After many years, Indian corporate earnings seem to be accelerating, with around 20% growth expected over the next couple of years.

In this light, valuations are now reasonably attractive, trading closer to long-term historical averages.  There are two factors aiding earnings acceleration that are worth mentioning: improving asset quality of the banking sector driven by the implementation of the Insolvency and Bankruptcy Code (IBC), and the common Goods and Service Tax (GST) regime. Asset quality of corporate banks is rapidly improving, helped by the resolution of a few large distressed assets under IBC over the last 12 months.  Diwali gallery: EM and India managers pick their top Indian stocks GST implement...