Earnings should decline by 3.5% in Q4: CLSA

Here are some of expert views on how the equity market is expected to behave in the near term:

Sakhti Siva, Credit Suisse said that, "While Asia-specific factors look worse this time around like North Korea and portfolio flows moving to Japan instead of Non-Japan Asia, we believe European tail risks and a better US recovery compensate for those factors. For India, price-to-book has dropped to 1.94x. While this is well above the 2008-09 lows, we do note that India has more recently troughed at 1.9x book." Mahesh Nandurkar, CLSA said that, "Earnings should decline by 3.5% in Q4 with broad based growth deceleration. We would be buyers of L&T, Maruti, Tata Motors, Infosys, ICICI Bank, Sobha, Prestige & Dish TV ahead of the results and would avoid PSU banks, Wipro, staples."