Have a lukewarm view on telecom: Sanjay Sinha, L&T Mutual Fund

Sanjay Sinha, CEO, L&T Mutual Fund, in a chat with ET Now talks about the sectors he would avoid in the year 2011.

What would you avoid in the coming year?

As far as India is concerned, we have had telecom sector as one of the best performing sectors till 2009. Now because of the rising competitive pressure on pricing as well as all the other issues which have come up, as a sector I have a fairly lukewarm view on it.

The second sector where one will have to be very very selective would probably be real estate. Given the fact that now this sector has fairly large market captialisation, it will probably begin to come up in the radar of a number of fund managers for the purpose of stock selection. But then, since you have to contend with the fact that in the year 2011 there is a point of view which believes that the housing prices should see some amount of moderation if the inventory has to be evacuated, for some time I would be selective in terms of real estate.