GDP growth forecast for 2013 revises down to 5.9%: CLSA

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

Jonathan Garner, Morgan Stanley: We have trimmed our MSCI EM target from 1230 to 1220. For India, the 2013 GDP growth forecast was revised down to 5.9 percent from 6.1 percent, while the inflation forecast was revised up by 50 bps, to 8.2 percent. This is a more stagflationary macro mix than previously envisaged and hence a somewhat more bearish environment for equities.

Russell Napier, CLSA: Emerging equities aren't adequately discounting the risk of deflation. The recent divergence between emerging market equities and commodities is a warning sign. EMs are particularly vulnerable owing to their deteriorating balance of payments, which in turn would drive a deflationary adjustment, thereby hurting equities.