Jul 12, 2012, 08.23 AM IST

Hopefully next FM will focus on cutting oil subsidies: CLSA

Hopefully, the next Finance Minister will focus on more critical issues such as cutting energy subsidies, but investors should not believe in this outcome until they see the evidence, says Chris Wood of CLSA.

Bazaar at 08:00 am

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Here are experts equity calls for the day on how the markets are expected to trade:

Chris Wood, CLSA: Financial markets are on hold pending yet another EU summit, but it doesn't look like stock markets are going to get what they really want from the meeting. This week Indian authorities lost another opportunity to impress investors when a much hyped statement to stabilise the currency turned out to be mere tinkering with regulations.

Also Read: Market Watch: 10 piping hot stocks to focus on today

Hopefully, the next Finance Minister will focus on more critical issues such as cutting energy subsidies, but investors should not believe in this outcome until they see the evidence.

Robert Buckland, Citigroup: Global equities at 11 times forward EPS are cheap, but not at the extremes of 2008 or mid-2011. They are pricing in a fall in profits and global recession. However, within Emerging Markets, the valuation gap between defensives and global cyclicals is well above historical average. Risk-reward now favours some rotation back into global cyclicals and financials.