Expect inflation to peak out in August: JPMorgan

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

Bharat Iyer, JPMorgan: We expect inflation to peak out in August as the complete pass through of the recent fuel price hike would be captured. Our analysis suggests consumer staples, financials and utilities tend to outperform in the quarter post the inflation peak. We reiterate our Overweight stance on financials.

Manishi Raychaudhuri, BNP Paribas Securities: During periods of lacklustre equity markets and tight credit environment, corporate inability to repair balance sheets brings investor concerns about high leverage to the fore. Companies with low interest coverage ratios and high leverage like Unitech, Suzlon, Punj Lloyd, HCC, DLF and Bajaj Hindusthan appear to be at risk.