Sensex to be flat in 2011: Nandan Chakraborty

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

Nandan Chakraborty, Enam: With massive current headwinds, the Base case is for Sensex to be flat this year, with natural growth offsetting any PE de-rating for the year. Yet the possibility of further QE due to US not recovering as per expectations, makes a Bar-bell risk profile in India with large potential upside or downside depending largely on liquidity inflows & their effect on deficit, rupee & availability of capital to fund infrastructure.

Manishi Raychaudhuri, BNP Paribas Securities: The market has been volatile as investors grappled with various factors. Given the numerous headwinds, the market's ability to sustain its current valuation is predicated on continued superior revenue and earnings growth. Any earnings disappointment may trigger a sharp correction, particularly as other headwinds like inflation and interest rates seem to be intensifying.