Earnings depression likely in Mar quarter: Morgan Stanley

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

Ridham Desai, Morgan Stanley: Earnings depression is likely to persist this quarter. During the earnings season, we watch out for surprise breadth, the pace of increase in capital costs, notably interest costs and companies that exhibit pricing power. Even though earnings may outperform the narrow market on topline growth, they are likely to underperform on the bottomline.

Manoj Singla, Religare: Q4 earnings are likely to post a sharp downtick in revenue growth amid margin contraction across the board. Liquidity, the key tailwind for the rally in Jan-Feb may remain benign globally. We expect easing by the RBI and the growth momentum to improve gradually through FY13.