GST likely to disrupt economy during transition period: BoAML

Sanjay Mookim of Bank of America Merrill Lynch says while the GST (goods & services tax) should be beneficial in the long term, it will likely disrupt the economy during the transition period.

At a 17x 12-month forward P/E, Sensex valuations are nearly 15 percent above the long-term average and are likely ignoring this disruption, it feels.

Coupled with the residual impact of demonetisation, Sensex consensus earnings are likely to be cut by 6-8 percent over FY18-19, Sanjay Mookim says.