Web Sify
Follow us on
Mail
Print

Fund managers see a 'muted picture'

Source : BUSINESS_STANDARD
Last Updated: Thu, Jan 12, 2012 19:40 hrs
S&P downgrades Belgium to AA on funding pressures

Domestic cues have taken centrestage in trades, as markets have reacted to the third quarter results of Infosys, which has begun the results season. At Rs 2,372 crore, the information technology (IT) major has reported a growth of 25 per cent in net profit for the December quarter. However, the company, which earns most of its revenues from US exports, has cut its dollar revenue guidance for 2011-12 (April-March) to 16.4 per cent, from the earlier 17.1-19.1 per cent.

Meanwhile, beating street expectations, industrial output growth for November has stood at 5.9 per cent, impacting the market sentiment.

Bubble waiting to pop?

For the week, Rikesh Parikh's net worth stands at Rs 971,000, down 2.9 per cent; Ashish Mittal's net worth is Rs 936,000, down 6.4 per cent; Alex Mathews' net worth is Rs 1,014,000, up 1.4 per cent; and Ajay Parmar's net worth totals Rs 995,000, down 0.5 per cent.

Rikesh Parikh, V-P (equity strategies), Motilal Oswal Securities
"I have increased exposure to large-cap stocks such as HDFC Bank, Jaipraksh and Hindalco, where the earnings visibility is high. I have exited from Deepak Fertilizer, while booking profit in HCL tech. We expect the Sensex profit after tax (PAT) to grow nine per cent year-on-year in the December quarter. This will be the lowest four-quarter average growth, except the global crisis quarters. While the top growing sectors would be cement, utilities, private banks, consumer and technology, the top de-growing ones would include infrastructure, real estate, telecom, metals and capital goods."

His top holdings include Dena Bank, Coal India, Mcleod Russel India, State Bank of India and Jaiprakash Associates.

RIKESH PARIKH
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Dena Bank 76.10 59.10 0.35
Coal India 339.94 325.65 0.33
Mcleod Russel India 234.20 190.85 0.29
State Bank of India 1783.97 1764.40 0.26
Jaiprakash Associates 62.24 58.80 0.26
Total investments

2.45
Cash

7.25
Net worth

9.71

Ashish Mittal, fund manager (portfolio management services), Centrum Wealth
"The portfolio construct follows a defensive investment strategy, something I intend to maintain till the March'12 elections and, thus, I continue to maintain exposure to deep-value stocks and cash rich companies with a high dividend yield. I also have exposure to interest rate-sensitive sectors (such as banks, auto and capital goods), expected to gain from an increasingly probable reversal in the rate cycle. Currently, I have exposure to just one metal company, for its cash position and large play on silver, which is a byproduct."

Mittal remained on the sidelines during the week. His top holdings include MRF, Balmer Lawrie & Co, KA5V1BK2, Bharat Electronics and ITC.

Cartoon: Guess who wants Virat's middle finger now!

ASHISH MITTAL
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
MRF 6,816.10 7,297.70 0.73
Balmer Lawrie & Company 618.48 493.40 0.64
KA5V1BK2 372.59 359.25 0.61
Bharat Electronics 1,582.70 1,464.35 0.59
ITC 199.36 204.95 0.56
Total investments

8.32
Cash

1.04
Net worth

9.36

Alex Mathews, head (technical and derivatives research), Geojit BNP Paribas Financial Services
"I have sold Timken India and Manappuram Finance at a profit and have added Deccan Chronicle Holdings, Reliance Industrial Infra, Pipavav Defense, Hexaware and Hindustan Oil Exploration, which are trading with good gains. Going forward, I would try to add banking and infrastructure stocks if the Reserve Bank of India eases its stance on interest rates and reserve ratio. As far as the quarterly numbers are concerned, we expect a muted picture. IT and technology stocks may bring out comparatively good results due to the rupee depreciation seen in the last quarter. On the other hand, manufacturing, banking, infrastructure and auto segments are expected to post dull results. The whole picture may turn around from the second quarter of FY13, when interest rates and input cost would start to decline. Having said this, given the advance tax numbers, it won't be as bad as the last quarter."

His top holdings include Muthoot Finance, R7L9EI0I, Pipavav Defence & Offshore Engineering Company, Deccan Chronicle Holdings and Hexaware Technologies.

ALEX MATHEWS
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Muthoot Finance 156.39 156.05 0.78
Reliance Industrial Infra 333.63 427.60 0.64
Pipavav Defence & Offshore 68.92 69.25 0.35
Deccan Chronicle Holdings 39.10 40.85 0.20
Hexaware Technologies 82.41 83.45 0.17
Total investments

2.54
Cash

7.59
Net worth

10.14

Ajay Parmar, co-head (investment banking), Emkay Global
"I have pruned my portfolio a bit and am still holding on to companies like Suzlon, IRB Infra, Orbit Corporation and IVRCL. We expect weak results for the December quarter, with a sales growth of 20 per cent and a PAT growth of just five per cent, on the back of rising raw material cost, shrinkage in demand and mounting interest burden. While pharma, IT, consumer and agri are expected to do well, oil & gas, power, real estate and metals are likely to be under pressure."

His top holdings include Orbit Corporation, Shree Renuka Sugars, IVRCL, Engineers India and IRB Infrastructure Developers.

AJAY PARMAR
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Orbit Corporation 28.91 38.45 0.46
Shree Renuka Sugars 25.31 32.35 0.39
IVRCL 30.02 38.10 0.38
Engineers India 233.98 233.90 0.29
IRB Infrastructure Developers 124.71 136.70 0.27
Total investments

2.25
Cash

7.70
Net worth

9.95


For Smart Portfolios, visit www.smartinvestor.in/sp




More from Sify:
blog comments powered by Disqus
most popular on facebook
talking point on sify finance