Frontline sectors banks, autos may weaken in FY12: Experts

At the Indian Association of Investment Professionals (IAIP) Forecast, experts Amitabh Mohanty head of fixed income with Reliance MF; Nem Kumar strategist with IIFL; Amit Bhartia portfolio management EMs at GMO; Shankar Sharma founder of First Global Services, Abheek Barua chief economist at HDFC Bank and Kunal Shah bullion analyst with Nirmal Bang discuss about the various asset classes and equities and share their outlook for investments FY12.

Experts say that the market is two-tired, both bullish and bearish at different ends. Hence, in the tricky looking market, experts believe that one needs to pick the right sector, choose the correct stock and company that can high returns. Sector selection being the key strategy, it can help gain 30% to 40% returns. Inflation continues to be a worry, as experts see liquidity shortage pinching frontline sectors like banks and autos to weaken, if the pressure does not ease. Below is a verbatim transcript of the discussion with Sunil Singhania, head of equities with Reliance MF on CNBC-TV18. Also watch the accompanying videos. Singhania: In the given one year horizon, what would be your view for Indian equities? Sharma: My view has been for the last 12 to18 months, India would be a two-tiered market in which 25 stocks or maybe 3 or 4 sectors will look dramatically different from the majority part of the market. It has been a pretty consistent theme that I have adhered to. The good ones