Market headed for correction, but outlook strong: BofA-Merrill

Market could fall to correct about 5 per cent 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 company's earnings to double over the next 4-5 years. Says view supported by mean reversion of corporate profits to GDP among other indicators.

The note 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.

(Reuters)