Invest real estate, IT, FMCG: JP Sinha

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 28/05/12 Are Mutual Funds betting on Nifty?

Jayprakash Sinha of Mangal Keshav is of the view that one can invest in real estate, IT, FMCG, cement with long term horizon.

Sinha told CNBC-TV18, "The deceleration is expected both in the economic data as well as in the corporate. Having said that this is more or less now factored into the market prices, which are almost 30-35% down from the peak as we have seen in January. So if you look at, there is an opportunity here now though on the relative basis we are still at 14-14.5 times on PE basis nearly over 3-times on the price to book when the Return On Equities (ROEs) have come down from their highs of 21-22 to sub 20 level. So that doesn't give you enough confidence."

He further added, "Having said that if I slightly extend my assumptions to 2010 numbers and then I see a lot of stocks giving me an upside of more than 15%. So putting things in perspective in a slightly longer-term horizon, I would be a buyer and I would use this opportunity, which may arise because of this negative news that are coming into the system as an investment opportunity. So be it real estate, be it interest rate sensitive all across, IT pack, FMCG, cement in particular. So these are the stocks, which I would actually invest for slightly longer-term horizon if I see market coming down from the current level on the basis of bad news coming in."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.