Indian stock markets zoomed to two-year closing highs in the weeks under review (December 24- January 4), after US legislators struck a deal to halt a round of automatic fiscal tightening that had threatened to push the world’s largest economy into recession. Supporting the buoyant mood were steady foreign institutional investor (FII) inflows and better than expected PMI numbers. All the fund managers started the new year actively.
A K PRABHAKAR
Sr VP (Equity Research), Anand Rathi Financial Services
Prabhakar had five transactions during the period. He bought SKS Microfinance and Thermax, while exiting from Bayer Crop Science, P&G Hygiene and Healthcare and Allahabad Bank.
He continues to maintain a cautious stand even as the Nifty crossed 6,000, stating the upmove will be intact only as long as the Nifty remains above 5,900. Hence, stock-specific is the strategy to be continued. Backing his picks like SKS Microfinance, he said the counter was expected to perform well as loan disbursement has gained momentum, along with successful cost optimisation. Also, it will augur well if the new policies under the MFI Bill are passed. He took a position in Thermax as he opines that once the sentiment and cycle turns, with rate cuts coming in, investments in this sector will start, translating into orders, a positive for the stock.
His current top holdings include Bajaj Corp, Karur Vysya Bank, Thermax and Health Care, Reliance Capital and Dr Reddy’s Laboratories. The net worth is Rs 11.47 lakh, up 14.7 per cent.
Head, Technical Research, Angel Broking
Kulkarni had six transactions during the week. He exited from CEAT, Escorts and Tech Mahindra, while buying Bata India, L&T and Lanco Infratech. His top holdings include Tata Chemicals, Reliance Inds, Apollo Tyres, Lanco Infratech and Shree Renuka Sugars . The net worth is Rs 11.98 lakh, up 19.85 per cent.
Fund Manager, Centrum Wealth
Fernandes had five transactions. He exited from Tide Water Oil and Bharat Electronics. Meanwhile, he bought NMDC, Jammu & Kashmir Bank and MRF.
Optimistic, he expects about 20 per cent upside for 2013, with Sensex earnings for FY14 expected around Rs 1,445. He sees Jammu & Kashmir Bank as a good buy, as the efficient midcap bank is trading at just 1.5 times adjusted book value. MRF is another thematic play on the booming automobile population in India, which has almost doubled in 10 years.
His top holdings include Karur Vysya Bank, MRF, ITC, NESCO and Reliance Capital. The net worth is Rs 11.84 lakh, up 18.4 per cent.
CMD, CNI Research
Ostwal had a single transaction, a buy on State Bank of India (SBI). He is positive about the markets but not expecting a runaway bull market. Also, he expects the results season to be in line with expectation, with focus shifting to B-grade stocks if the Nifty remains above 6,000.
He is betting big on his only pick this week, SBI, as he expects the Land Acquisition Act to do a lot of good; SBI has the highest exposure to infra projects, currently classified as non-performing assets. With this Bill getting through, NPAs will turn good and provisioning will come down. His top holdings include Tata Steel, Karnataka Bank, Century Textiles & Industries, BF Utilities and SBI. Ostwal’s net worth is Rs 11.07 lakh, up 10.7 per cent.
Fund Manager,Emkay Investment Managers
Shah carried out a total of 12 transactions during the period under review. He exited from ING Vysya Bank, IDFC, ICICI Bank and Exide Industries, while buying Dewan Housing, Tech Mahindra, Whirlpool, Tata Motors, Divis Laboratories, IDFC and ICICI Bank. Shah opines the undertone of the markets is buoyant, with FII flows continuing to be remain strong. International markets are also showing a decent amount of strength. Expectations on lower inflation, a downward interest rate cycle and more reforms from the government has revived the sentiment, which he expects to remain bullish. Dewan Housing was picked as it was priced at a fairly attractive valuation, as compared to other housing companies. Tech Mahindra, too, was a play on attractive valuations. His current holdings include Cipla, Whirlpool of India, Biocon, Divis Laboratories and PTC India. Net worth is at Rs 11.65 lakh, up 16.5 per cent.
Sr VP and co-head equities,Motilal Oswal AMC - PMS
Badshah carried out six transactions during the week, as he exited from Unitech and Strides Arcolab, while buying DLF and LIC Housing Finance.
Badshah expects the markets to gain about 15 per cent during calendar year 2013. On his buys, he says the DLF scrip is an underperformer in the real estate space, with improving fundamentals, making it attractive. Another pick, LIC Housing Finance, is a play around the expected lower interest rate scenario, coupled with an improving demand outlook for housing.
His top holdings as of this week were Maruti Suzuki, United Spirits, Wockhardt, State Bank of India and Bajaj Corp. Badshah’s net worth is Rs 12.4 lakh, up 24 per cent.