Markets could remain cheap, says JPMorgan

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

Michael Kurtz, Nomura: Markets are trying to discount 2013's growth and corporate earnings outlook. The story begins with US fiscal cliff uncertainties and the inseparable issue of today's all important US elections. The ECB's shift toward direct monetization, the formal launch of the ESM and Fed initiation of QE3, have all materialized, leaving now only the more mundane prospect of a slow grind upward as improving growth prospects in key economies incrementally bolster corporate earnings expectations.

Bharat Iyer, JPMorgan: Indian equities are trading at the lower end of the last decade's trading range. But the economy's potential growth rate has deteriorated markedly over the past 2 years. In the absence of structural reforms to address growth constraints, markets could remain cheap. We are Overweight private sector banks on expected policy stimuli and Underweight on consumption as rural growth momentum moderates.