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GST likely to disrupt economy during transition period: BoAML

Coupled with the residual impact of demonetisation, Sensex consensus earnings are likely to be cut by 6-8 percent over FY18-19, Sanjay Mookim says.

March 09, 2017 / 11:37 AM IST

Sanjay Mookim of Bank of America Merrill Lynch says while the GST (goods & services tax) should be beneficial in the long term, it will likely disrupt the economy during the transition period.

At a 17x 12-month forward P/E, Sensex valuations are nearly 15 percent above the long-term average and are likely ignoring this disruption, it feels.

Coupled with the residual impact of demonetisation, Sensex consensus earnings are likely to be cut by 6-8 percent over FY18-19, Sanjay Mookim says.

first published: Mar 9, 2017 10:42 am

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