Equities continue to grind higher: Nomura

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

Sean Darby, Nomura: Equities continue to grind higher, but market breadth around the region suggests performance has become very narrow in India and Korea. While a terms-of-trade shock and margin compression are undermining earnings expectations, extremely bearish positioning in the dollar suggests the equity markets are more prone to correction from forex rate moves than any other factor.

Chris Wood, CLSA: Spike in oil prices will remain a negative consideration for India. Still, a significant de-rating has already occurred in India. A marked feature of the Indian market so far this year is how little foreign selling has occurred given the degree of negative sentiment hitting the market. There are two ways of looking at it. The first is there is still a lot of potential foreign selling pressure. The second is foreign money will prove to be resilient because of the long-term Indian growth story.