IIFL expects more downgrades to earnings estimates post Q1

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

H Nemkumar, IIFL Institutional Equities: We retain our negative view on the markets. With the possibility of further growth deceleration, the investment cycle showing no signs of pick-up, we expect more downgrades to the consensus earnings estimates post Q1. Our top large cap picks are HCL Tech, HDFC Bank, Hero Honda, ITC, M&M and Sun Pharma.

Bharat Iyer, JPMorgan: We believe that sedate earnings growth will offer the markets an opportunity to consolidate following the sharp upmove recently. But we maintain our constructive stance on Indian equities for FY12 as we expect inflation to peak out over the next quarter and the investment cycle appears to have bottomed out.