Domestic newsflow will continue to remain positive: CLSA

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

Mahesh Nandurkar, CLSA: September saw a strong sector rotation trend supported by positive domestic factors. We believe that the domestic newsflow will continue to remain positive in the near-term. Average premium of defensives versus cyclical plays is still way above the historical averages leaving enough head-room for the current rotation trend to continue. We are underweight staples and overweight banks and consumer discretionary. ICICI Bank, Axis Bank, SBI, IDFC and Tata Motors are our favourite high beta plays.

Nandan Chakraborty, ENAM: We expect the government to continue to make positive noises in the areas of infrastructure, energy and fiscal consolidation. However, any reform that enhances efficiency in the longer run like land acquisition, mining bill is likely to progress slowly. In our short-term model portfolio, we recently increased beta and correspondingly decreased defensive allocations.