Underweight on financials: Barclays

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

Gerard Minack, Morgan Stanley: We have been too bearish on equities this year. Earning forecasts are down, but valuation is up. If the rising P/E predominantly reflects the power of central bank policy, then the prospect of ongoing policy intervention would be a powerful bull point for stocks. Bhuvnesh Singh, Barclays: We believe that the market could revert back to an earnings & cash flow focus, and hence, we adopt a defensive stance. We are Overweight on consumer staples & healthcare and Underweight on financials. For regulatory action, we focus on the telecom sector and on stocks like JSPL and Hindalco, for which there could be tangible improvements in earnings & cash flow visibility.