RBS recommends staying with cautious stance on market

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.