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.

EDITORIAL OF THE DAY

  • A clean up of economy is an exercise that must have the widest-possible spread

    The noose appears to be tightening further on those that continue to dabble in black money or have made attempts to keep the tap open for black econom

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: A DANGEROUS NEW GREAT GAME

Push the enemy into an unreal world, one where he ...

Ananda Majumdar

Pitfalls of handing a walkover

Congress workers in Lucknow are said to be behind posters, ...

Zehra Naqvi

Creativity springs from being open to experimentation

When Albert Einstein published his first revolutionary paper on the ...