Expect 20.6% EPS growth in FY12: BNP Paribas

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

Manishi Raychaudhuri, BNP Paribas: Our Sensex target at 23,900 implies a 1-year forward PE of 16.6x at the end of 2011, same as now. We expect 20.6% EPS growth in FY12 to drive up Sensex 18% in 2011, similar to the 15% return in 2010. Our overweights include IT, auto, engineering while we are underweight on global cyclicals & neutral on banks. The top buys include Infosys, Ashok Leyland, Axis Bank and the top sells are ABB, Ambuja Cement & HUL.