Foreign brokerage Bank of America Merrill Lynch BofAML ) today cautioned that the Sensex could go down to 32,000 by December 2018, dragged down by likely introduction of new long-term capital gains tax on equities.It warned that this could not only mar sentiments, but also hurt domestic inflows. The BSE Sensex gained by 341.97 points and closed at 36,139.98 today. "We stay cautious on Indian equities and peg the target for Sensex at 32,000 by December 2018. We see little possibility that forthcoming budget would deliver reasons for material upside to an already inflated equity market," BofAML said in a report here. "We estimate that all listed companies paid dividend distribution tax of Rs 170 billion in FY17.

Source: Economic Times January 23, 2018 15:11 UTC