RBI's move may negatively impact capex, earnings: Barclays

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

Bhuvnesh Singh, Barclays: RBI's recent moves to control exchange rate volatility are not without its risks. Although it may provide temporary relief to the rupee, these measures reduce growth expectations and hence, could negatively impact capex and earnings for the corporate sector. We are Underweight on domestic cyclicals, PSU banks and Overweight on IT services, pharma & energy. Also Read - Will Nifty test 6000 on Bernanke's Fed tapering views? Prabhat Awasthi, Nomura: RBI's recent moves will worsen the market's macro ecosystem and signals a reversal of its easing bias. The impact on growth will be negative. There could be some downside risk to our March 2014 Sensex target of 21,700 as any negative move in interest rates will be a cause for the market multiple coming off.