Indian shares headed for correction, but outlook strong: BofA Merrill

Tags: Stock Market
Indian shares could fall to correct about 5 percent over the next two months, Bank of America-Merrill Lynch says in a note.

BofA-Merrill says pace of reforms "slower" than expected.

But adds it still expects India's earnings to double over the next 4-5 years.

Says view supported by mean reversion of corporate profits to GDP among other indicators.

Adds auto, cement and energy sectors will drive earnings rebound

Top buys that fit its theme are: ICICI Bank, State Bank of India, Maruti Suzuki and Oil India.

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