Morgan Stanley cuts GDP estimates for FY12 to 7.2%

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

Chetan Ahya, Morgan Stanley: India is heading for the worst growth since the Credit Crisis. We believe a combination of factors including persistently high inflation, higher cost of capital, cut in the ratio of fiscal spending to GDP, weak global environment and slow pace of investment will trigger further slowdown. We are cutting GDP estimates for FY12 to 7.2% from 7.7% and for FY13 to 8% from 8.5%.

Manishi Raychaudhuri, BNP Paribas Securities: Sensex has been gyrating in a narrow range between 17,000-19,000 given the global uncertainty and domestic macro environment. However, investor feedback indicates an increase in risk appetite due to partial resolution of global concerns and some revival in domestic environment. Our preferred picks include IRB Infrastructure, Indian Hotels, Sintex Industries, Shree Renuka Sugars and Sobha Developers.