In a first since August 2017, Indian stocks' worth falls below $2 trillion

Indian stocks have given up most of their gains for the year, but there may be more pain ahead.

That’s the view of Bank of America Merrill Lynch, whose 32,000 year-end target for the S&P BSE Sensex Index implies another 11 per cent plunge from Wednesday’s close. That would put the gauge 2.5 per cent away from a bear market -- a 20 per cent slide from its Aug. 28 record.

Uncertainties related to oil prices and next year’s federal elections may “keep domestic sentiment and equity flows in check,” Bank of America Merrill Lynch strategists Sanjay Mookim and Nafeesa