Upgrade banks from neutral to overweight: BNP Paribas

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

Manishi Raychaudhuri, BNP Paribas: Every USD 10 increase in crude prices increases the fiscal deficit by 0.17-0.24% depending on the proportion of under-recovery absorbed by the govt. The recent underperformance of the Indian market shows a welcome return to sanity. We have upgraded banks from neutral to overweight and are underweight metals & energy. Top buys include ICICI Bank, Bajaj Auto & Infosys. Top sells include ABB, ACC & HUL.

Michael Kurtz, Macquarie Securities: Despite concerns over Asian inflation, policy tightening and slower growth, a decent Q3 results season across the region is helping bolster sentiment, with analysts in most markets, except India, busy upgrading their 2011 & 2012 earnings forecasts. The premise of a sustained zero-sum outflow from EM equities to developed equities appears artificial.