* Bank of America-Merrill Lynch says expects the Bombay Stock Exchange Sensitive Index (Sensex) to drift to its 15,000 target given economic growth and current account concerns.
Adds business confidence is below the Lehman crisis levels.
* While valuations are below long term averages,the market has been de-rated as India’s growth momentum is at 10-year low and the twin deficits too are the worst in over a decade,BoA-ML analysts say.
* The bank adds a meaningful recovery is unlikely until the government undertakes reforms.
* But BoA-Merrill adds oil prices could provide near-term relief,saying a $10/barrel decline in oil reduces India’s current account deficit by 0.4 percent of GDP and the fiscal deficit by 0.2 percent of GDP.
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