Expect markets to drift down towards 14000: Macquarie

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

Rakesh Arora, Macquarie: Markets have corrected and valuations do appear reasonable, but not cheap. We expect earnings downgrades to continue and for the markets to drift down towards 14000. Consensus FY12 earnings growth estimates have declined from 19% to 10%, and we see further downside to just 4-5%. We recommend a defensive positioning and the only change to our top 10 ideas is a tactical switch from ITC to HUL. Russell Napier, CLSA: All eyes are on the EU Summit on Dec 9 and a decision on allowing the European Commission to determine the fiscal policy for all. The upshot is that even if all 17 countries sign, it could be a year before we know which politicians can bring their Parliaments and people with them. This would severely delay the ECB big bazooka and also the Euro bonds, so any rally is a good time to sell.