Expect monetary tightening to continue: JPMorgan

Here is expert equity call for the day on how the markets are expected to trade:

Bharat Iyer, JPMorgan: Indian equities are likely to grind higher over 2011 and we have set a Dec 2011 fair value target of 23,500 for the Sensex implying 17% upside potential from current levels. But the ride could be bumpy, particularly over H1. Inflation remains stubbornly high and local liquidity is tight. Surging commodity prices are adding to the pressure. We expect monetary tightening to continue and expect consumption plays to underperform on the back of these headwinds.