BackIndian shares headed for correction, but outlook strong: BofA Merrill
Indian shares could fall to correct about 5% over the next two months, BofA-ML said in a note on Monday
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Mumbai: Indian shares could fall to correct about 5% over the next two months, Bank of America-Merrill Lynch (BofA-ML) said in a note on Monday.
BofA-ML said the pace of reforms were “slower" than expected, but added that it still expected India’s earnings to double over the next four-five years. It said the auto, cement and energy sectors will drive earnings rebound.
The firm said that its view was supported by the mean reversion of corporate profits to GDP (gross domestic products) among other indicators.
Top buys that fit BofA’s theme are—ICICI Bank Ltd, State Bank of India, Maruti Suzuki India Ltd and Oil India Ltd.
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