Nifty may sink to 3800-4000, buy more in '12: Sandeep Shah

Indian market has been hammered into pulp this year and there is a growing fear that this is going to last longer than expected. Experts are also worried that the Indian situation could be worse if global economy loses hope of a recovery.

This has left experts ringing more warning bells. Sandeep Shah, CEO, Sampriti Capital is alarmed that the Nifty may even sink to 3800-4000 level with a little hope of rising to 5500-6000 by 2012 end. In an interview to CNBC-TV18, Shah pointed out that the there could be recession in Europe in 2012. However, there is a silver lining too to these dark clouds. Shah feels that though it may be a turbulent volatile time but there is going to be a great buying investment opportunity in 2012 to capitalise on. Shah is expecting more rate cut by the Reserve Bank of India in 2012 and the gross domestic product (GDP) is likely to grow around 6.8% in the first half of FY13. Best bets of 2012 As an investment strategy, Shah advises to focus on midcap banks like J&K Bank and Karur Vysya Bank. Pointing out that worst is probably over for Infosys, he adds that it is better to avoid midcap IT stocks. Furthermore, Shah prefers buying Bharti, Titan and HUL on dips. He recommends selling BHEL and L&T while it is a clear 'avoid' from capital goods. Below is an edited transcript of his interview with Mitali Mukherjee and Sonia Shenoy. Also watch the accompanying videos. Q: What is the expectation going into next year? What do you think 2012 will be like for the Indian equities scenario? A: The bear market in 2011 wasn