Indian markets to stay cautious and rangebound: Oppenheimer

Manish Hemrajani, Oppenheimer: We expect Indian equity markets to stay cautious and rangebound. Our Sensex target remains at 18,500 for the calendar year 2012. The GAAR deferment by a year is a near-term positive for the markets and may bring back much-needed liquidity by way of FII inflows and as a result some stabilization in the rupee. However, investor sentiment has been damaged and could remain subdued until India's macro indicators, policy environment and corporate confidence become more certain and favourable

Nicholas Smithie, UBS: Amidst concerns about the European commitment to debt reduction and the strength of the US growth recovery, investors are content to remain Overweight the low beta defensive countries and sectors. As a consequence the higher beta BRIC markets have underperformed. But these concerns are well reflected in valuations as BRICs are now trading at a 30% discount to other emerging markets.