News: 'Real estate may outperform Sensex in one year'

(BL 14/10/2006) Kolkata - The Sensex at all-time high fetched different reactions from retail regulars. Some thought it was a non-event in the larger India unfolding context, while certain others chosing to climb the watch tower. There are those who feel opportunity would be relatively low in the large-cap in the near term. But nobody seems to be bearish at the benchmark peak.

Here is a pick of three among several the Business Line talked to during the day across the country.

Sunil Luthria, 46, a self-confessed long-term (read 6 months to one year) investor with high-risk appetite, does not get a high on the Sensex.

"For me, anytime is opportune time, whether benchmark index is the peak or trough. However, a fall in indices excites me more," he confesses.

This Mumbaikar chartered accountant, who has not failed in hitting the bull's eye for the last 18 years, revels in discovering value in stocks with high potential, be it large cap or micro cap.

"Since 2003-04, I have revised upwards my average target return to 40 to 50 per cent in sync with the growth trend. It will remain so for another year or so.

The Sensex may return 20 to 25 per cent in the next one year." Luthria hates `technicals' and prefers options than futures, thinks that in the next 12 months, low-value stocks and the real estate may outperform the Sensex.

Anirban Dasgupta, 38, a cost accountant in Kolkata, would like to be on the sidelines now waiting for the results to pan out for his blue chip dominated portfolio, mostly Sensex members.

During mid-May-mid-June this small investor with a 3-year horizon, made fresh entries. So did Somnath Mitra, a middle-aged teacher from Kolkata.

He is not in a hurry to take profit even after seeing 50 per cent to 100 per cent appreciation in his portfolio of mid and small cap stocks.

He reckons that the Sensex may reach 14,250 around the Budget time keeping the overall sentiment warm.