Stay cautious with Sensex December 2017 target of 30,000: Sanjay Mookim

Sanjay Mookim of Bank of America Merrill Lynch said there is much investor anxiety about market valuations post the recent rally; with an increasing desire to find the still inexpensive/reasonably priced stocks.

The BSE Sensex surged 17 percent since the beginning of the year and traded above 31,000 level while the NSE Nifty surpassed 9,600-mark.

He said the market is expensive and the breadth of re-rating is extraordinary.

There is a strong chance the current valuations driven rally turns, Mookim said, adding the brokerage house stayed cautious with a Sensex December 2017 target of 30,000.

Recent history suggests buying inexpensive/laggard stocks does not help during such a correction, he feels.