Prefer buying GILTs over index for next 12-months: Experts

In an interview to CNBC-TV18 market experts Anand Tandon, Prakash Diwan of Altamount Capital Management and Siddharth Bhamre of Angel Broking shared their outlook on the market and stock specific bets.Both Tandon and Diwan believe that buying long-term GILTs is now a good option. "At the index level buying GILT is better than buying index for the next one year. “If one believes that interest rates will fall then long-term GILT fund will give better returns than the index over the next 12-months," says Tandon.Tandon says although the valuations in the market currently aren't compelling one cannot fight the uptrend and neither can one fight the money inflows but one can surely look at being stock specific.  Bhamre has a bearish view on the market and says one should avoid going long and initiate shorts in Nifty. "We are changing our stance on this market from positive or buy-on-dips to cautious and probably for next one week sell-on-rise,” he adds.Tandon says, one should look at stocks where there is still value. "If one looks at market as a whole there are still sectors available that are reasonably cheap like IT which has been ignored because growth rate is presumed to be slower than other cyclicals," he adds.According to Tandon spaces like infrastructure and consumers that is banking of a massive revival for their sector are overvalued and may not give any significant returns. However, one could still find value in exports, chemical space and some auto ancillaries and also companies that would benefit from turnaround in coal.  He thinks the secular growth story in IT and pharma remains intact.Diwan too feels there is still value available in pockets like IT and pharma for example Cipla.Stock specific Bhamre likes the oil and gas space, especially Cairn India on back of crude stabilising and feels it can be a good contra bet. He also likes Reliance  which has seen a good amount of buying and so advices going long in it.