Sensex earnings to grow 17.6% YoY: Kotak Institutional

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

Sanjeev Prasad, Kotak Institutional Equities: We expect Sensex earnings to grow 17.6% YoY and 11.7% QoQ. We see a modest 5% upside to our FY12e Sensex fair valuation of 20,500 but see larger downside if crude prices persist at current levels and the govt fails to change its somewhat somnolent approach to economic matters. Garry Evans, HSBC: With inflation worries fading, we think investors will shift attention to the risk of global cycle slowing down. That suggests a move from export-sensitive cyclicals to long-term structural growth stories in Asia. We have raise China and financials to Overweight, and cut Korea and the IT sector to Underweight. We've also raised India, but only to Neutral because inflation remains stubborn and valuations are still high.