BNP Paribas sees further downside to Sensex

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

Manishi Raychaudhuri, BNP Paribas: Given the intensifying macro headwinds, political uncertainties and downside risks to earnings, we believe there might be further downside to Sensex. If we assume 4% downside to our EPS estimates for FY12 and FY13, and the Sensex trading down to a 10% discount to its long-term average of 13.5x, it would imply a near-term floor of 17000. L&T, Axis Bank, IndusInd Bank, Bajaj Auto, TCS and RIL are at attractive levels. Ian Scott, Nomura: We think it is too early to discount an end to the tightening and continue to be Underweight emerging markets and Asia ex-Japan in our recommended global portfolio. We conclude that there is a policy induced element to the current upswing in EM inflation, something that is unlikely to be masked entirely by lower commodity prices.