India is unlikely to underperform emerging markets, says Sanjay Mookim

Bigger PSBs will have a better bandwidth to fund long-term big-ticket corporate loans, said Mookim

It has been a roller-coaster ride for the Indian equity markets, given the slew of developments at home and globally. Sanjay Mookim, India Equity Strategist, Bank of America Merrill Lynch, tells Puneet Wadhwa that his fair value for the Nifty for December is 11,300. Edited excerpts:

Are the recent measures by the government enough to fix the economy and arrest the slowdown?

Given fiscal limitations, the government cannot afford a major fiscal stimulus. A reduction in taxes is one of the most effective means of addressing short-term demand issues, but this seems difficult in the near term. There is also the debate