2012 likely to be tumultuous year for India: IIFL

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

H Nemkumar, IIFL Institutional Equities: 2012 is likely to be yet another tumultuous and abrasive one for Indian equities. The downdraft in business cycle led by deterioration in a number of macro economic variables may worsen. Market valuations will de-rate further given falling ROE, continuing earnings downgrades and downward adjustment in growth expectations. Investors have no choice but to own high quality defensive portfolio.
 
Nandan Chakraborty, ENAM: The first quarter of this year will be a period of disappointments for the markets. With UP elections before Budget, no major govt reform initiatives are likely. There will be an added overhang of USD 200 billion Euro zone debt rollovers. In near-term, preservation of capital remains paramount. Stable businesses that are over-owned are most vulnerable to major FII sell-offs.