Fund managers remain bullish, watch for RBI action

Last Updated: Sun, Jan 20, 2013 04:59 hrs

Markets edged higher amid volatility over the past two weeks (January 7-18) with both benchmark indices ending at fresh two-year closing highs after the government partially deregulated diesel prices, coupled with the better-than-expected third quarter numbers from majority of the companies declared thus far. The Sensex topped the 20,000-mark while the Nifty ended above 6,050. However, hopes of a rate cut remained elusive as inflation remained above the central bank's comfort zone. Meanwhile, upbeat economic reports from the US and China further added to the cheer. Five of the six fund managers were active during the last fortnight.

Sr VP (Equity Research), Anand Rathi Financial Services

Prabhakar made some slight changes to his portfolio by adding LIC Housing Finance, Everest Industries and SKS Microfinance. On the other hand, he realised 10-25 per cent gains by selling Allahabad Bank and Bajaj Corp.

According to Prabhakar, the Reserve Bank of India (RBI) will be keenly watching corporate performance and inflation trend before going ahead with rate cut decision. However, widespread expectations from the market and government circles might compel them to jump the gun. So a 25 basis points (bps) cut in cash reserve ratio (CRR) could be on cards.

His current top holdings include Karur Vysya Bank, Reliance Capital, Thermax and LIC Housing Finance, Reliance Capital and Dr Reddy's Laboratories.

Prabhakar's net worth is at Rs 11.21 lakh, up 12.15 per cent.

Head, Technical Research, Angel Broking

Kulkarni revamped his portfolio by booking profits in over half of his holdings. The only ones which saw marginal losses were Mahanagar Telephone Nigam Ltd, Bata India and Ranbaxy Laboratories. The new ones added during the fortnight were ITC, Strides Arcolab, Oriental Bank of Commerce and NTPC. After all the transactions, Kulkarni has significantly ramped up his cash levels to a high of Rs 7.43 lakh, which is the highest for him since the start of the season.

Sell on every rise towards 6050 / 6100 is what Kulkarni advises as negative divergence on the daily charts, accompanied by topping out patterns in individual counters in index heavyweights, tells that market is susceptible to a correction in the near term.

Currently his portfolio consists of only five stocks-ITC, Strides Arcolab, Oriental Bank of Commerce, Shree Renuka Sugars and NTPC.

Kulkarni's net worth is at Rs 11.98 lakh, up 19.76 per cent.

Fund Manager, Centrum Wealth

Fernandes made no transactions during the past two weeks. He remains positive on the markets and expects new highs by end March 2013. The latest government action gives him the confidence that hard decisions will be taken to get the fiscal situation under control and lay the stage for economic growth. He expects RBI to cut repo rates by 50 bps with a possible CRR cut by 25 bps.

His current top holdings include Karur Vysya Bank, MRF, ITC, Nesco and Reliance Capital.

Fernandes' net worth is at Rs 11.83 lakh, up 18.30 per cent.

CMD, CNI Research

Ostwal made sea changes to his portfolio by booking profits in all of his holdings. Meanwhile, he added five new names-Karnataka Bank, Reliance Industries, IndianOil Corp, KSK Energy Ventures and Siemens-which constitute his portfolio now.

Ostwal opines that short term trends will be dictated by the rolls but is bullish otherwise. Contrary to the popular consensus, he is not expecting any rate cut in the January RBI meet. Ostwal's net worth is at Rs 11.28 lakh, up 12.75 per cent.

Fund Manager, Emkay Investment Managers

Shah was active through the last two weeks. He took profits in several counters and booked partial losses in Astrazeneca Pharma India and State Bank of India. According to Shah, markets are expected to remain buoyant as the government is making all the right noises and this would send positive signals to foreign investors and hence inflows should remain good. He expects a reduction in repo-rates by a maximum 0.25 per cent bps.

His current top holdings include Cipla, State Bank of India, Biocon, Divis Laboratories and PTC India.

Shah's net worth is at Rs 11.56 lakh, up 15.64 per cent.

Sr VP and co-head equities, Motilal Oswal AMC - PMS

Badshah had six transactions, both on the buy and sell side. The new additions made during the past two weeks were Hero MotoCorp, Tech Mahindra, Cipla, DLF, Tech Mahindra and Reliance Industries. The ones which were cleared off were Eicher Motors, United Spirits, Sun TV Network, Maruti Suzuki India and ITC.

He maintains his bullish stance on markets and expects a repo cut of 25 bps and a CRR cut of 25bps from the upcoming RBI policy. His top holding as of this week were Maruti Suzuki, DLF, Reliance Industries, State Bank of India and Tech Mahindra. Badshah's net worth is at Rs 12.34 lakh, up 23.38 per cent.

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