New year rally in risk assets to continue: BofA ML

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

Michael Hartnett, BofA ML: In the short-term, we expect the new year rally in risk assets to continue. European govt funding remains a huge issue, but we see more upside rather than downside, driven by bearish investor positioning and US growth upgrades. We would recommend taking profits if equity markets move toward our year-end target of 1350 for the S&P 500. Bharat Iyer, JPMorgan: We enter 2012 with a positive view on Indian equities, estimating broad market returns of 15-20%, despite the macro environment remaining muddled. Our optimism is based on account of negatives being priced in, signs of turnaround in policy environment and cautious investor positioning.