2011 likely to be a steady year, mkts may gain 15-20%: UBS

As we embark on a new year, there is a bitter taste left in mouth as markets could not touch all time high in 2010. However, experts feel that 2011 is poised to be a steady year for the markets.

In an interview to CNBC-TV18, Suresh A Mahadevan, Head of India Research, UBS Securities said that markets may gain 15-20% in 2011. According to him, telecom and infrastructure stocks could perform well while quality names in real estate could see some buying in 2011. He feels that emerging markets need to increase from asset allocation. Mahadevan is optimistic that India will continue to attract strong inflows. However, he is concerned that political uncertainty, high crude oil prices and inflation poise risk to Indian markets. Mahadevan has given a neutral rating on RIL while maintaining a bullish outlook on MphasiS. Here is the verbatim transcript of Mahadevan's interview with Udayan Mukherjee and Mitali Mukherjee on CNBC-TV18. Also watch the accompanying video. Q: How are you feeling about this year, bullish? A: Certainly 2009 and 2010 have been reasonably good for Indian markets. I think 2011 should be a steady year. We think the markets can go up 15-20% but clearly at a 20,000 index or 20,500 index the focus is going to be quite a bit on sector and stock selection I suppose. But at the margin, India should continue to do well in 2011 and of course this decade looks very promising for India both from an economic growth perspective and even corporate earnings perspective, so positive overall. Q: What about the return of the fall guys? For a lot of people 2011 will be the year where there will be a come back of high beta. Do you agree with that call? A: I wouldn