Sensex December 2017 target at 29000: Sanjay Mookim

Sanjay Mookim of BofAML said, "Demonetisation and GST mean that earnings for the next 3-4 quarters at least will be volatile. Downgrades are likely to continue but valuations are less of a hurdle.""We expect the government to act soon with both a monetary and fiscal stimulus. As well, difficulties on lack of cash should end in a few weeks.""In 2017, Indian equity can match/beat bonds. Our December 2017 Sensex target is 29,000. Within sectors, banks should dominate earnings growth, we stay with the well capitalised ones. Expect the government stimulus to help companies dealing with rural staples, cement, 2 wheeler and tractors," he added.