Markets in expensive territory, says BofA-ML

Sensex is at 28,893, just 107 points shy of the year-end target of 29,000 set by the brokerage

The ongoing rally has once again sent Indian markets into expensive territory and there could be a near-term pullback or time correction, says brokerage Bank of America-Merrill Lynch (BofA-ML). Time correction is a long period during which stocks return little to nothing, thus representing a kind of correction.  

The benchmark Sensex has climbed 8.5 per cent so far this year and has jumped 12 per cent since demonetisation lows in late December.

“In India, while we expect longer-term business cycle to improve in two to three years, we see near-term returns capped from here on due to a possible