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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

Biogas Potential in India

Biogas is a form of renewable energy produced from organic ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture