RBS recommends staying with cautious stance on market
The 50 bps rate hike by RBI surprised the markets. We recommend staying with the cautious stance on the market and financials, says Parul Saini of RBS.
Here are experts equity calls for the day on how the markets are expected to trade:
Parul Saini, RBS: The 50 bps rate hike by RBI surprised the markets. We recommend staying with the cautious stance on the market and financials. We think 5200-5300 on the Nifty could be a better entry point, where the Index would be trading at a forward P/E of around 14x, inline with its 10-year average.Markus Rosgen, Citigroup: Earnings are now above their 2007 peak but not the equity market or the P/E ratio, and this against a backdrop of record low interest rates. This indicates that investors continue to apply a much higher discount towards equities than they did a few years ago. Worries regarding the 2011 earnings forecasts for Asia ex-Japan are also overdone. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
