Sensex target of 20,800 for 2013: Citigroup

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

Russell Napier, CLSA: In the drive for yield, open-ended funds have taken on a lot of Emerging Market debt. But no forex reserve growth and weak currencies may cause a balance of payments crisis in EMs, thus putting the global recovery at risk.

Aditya Narain, Citigroup: Citi has a Sensex target of 20,800 for 2013, premised on expectations of over 9% earnings growth in FY13 and 12% in FY14. Their preferred large cap picks are Axis Bank, ICICI, Infosys, Maruti and Bharti, in the midcaps they like Apollo Hospitals, Idea, Sun TV, LIC Housing Finance and Exide.