What is Religare Capital betting on in the long-term?

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS UBS Sec: Good level to enter mkts, suggests stocks See dip as a short-term buying opportunity: CFC Seymour ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Religare Capital Markets is holding an investor conference. In an interview with CNBC-TV18, Vipul Sanghvi, President - Institutional Sales, Religare Capital Markets, speaks about his reading of the market and his outlook.

Here is a verbatim transcript of the exclusive interview with Vipul Sanghvi on CNBC-TV18. Also watch the accompanying video.

Q: What is it that is your selling point? What is the story you are selling?

A: What we have been saying via this conference is that there is good mix of opportunities, which are available across different sectors in Indian context. Given the correction, which was much anticipated, there is a good time to have a look at these companies because the valuations have turned attractive by 10-15%. This is an opportunity from a longer-term point of view to build the portfolio.

Q: What is your sense in Religare itself, are you all getting a sense that the markets have peaked off and they are likely to remain like this for sometime, now that after the heady growth in 2009, 2010 will be rangy period of not significant gains and therefore the buyer is a long-term buyer? Is that something that Religare will subscribe to?

A: To give you a backdrop, we turned cautious on the market sometime in December 2009. The major logic behind that was the fact is that the rate tightening bias globally is going to accentuate, second there will be global liquidity which is going to remain fragile and stimulus will be withdrawn in phases across the world and this seem to have played out. We turned cautious, recommending increasing the weightage on sectors like IT and defensives like consumption themes which are centric to Indian demand rather than the global commodity cycle. Having said that, this theme has largely played out and we continue to believe that Indian IT and Indian consumption, these are the two themes, which will still continue to play in the current calendar year and our larger part of top ideas would come from these sectors.