The chart shows that estimates of earnings per share of the companies that comprise the Sensex have been steadily revised downwards over the past year and a half. Interestingly, the downward revision means that, for the Sensex at 18,000, the fiscal 2012 (FY12) price-earnings multiple was 13.8 in December 2009, while it is now 15.
Also see | Earnings estimates downgraded (PDF)
Graphic by Ahmed Raza Khan/Mint
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