Sensex target of 22,500 for 2011-end: CLSA

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

N Krishnan, CLSA: With renewed inflation pressures and tight domestic liquidity conditions, we see India's premium valuations coming under pressure. Our 2011-end Sensex target of 22,500 implies 10% upside, lagging the 19% FY12 EPS growth forecast. Our key Overweights include energy, IT and industrials and top stock picks are BHEL, Dr Reddy's, Hindalco, IDFC and M&M.