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Fund managers turn net buyers

Last Updated: Thu, Mar 03, 2011 20:10 hrs

After a choppy performance last week, the markets staged a smart comeback on the Budget day, as the finance minister drew up proposals to curb rising inflation, and propel the economy towards its robust growth trajectory. Except for Ajay Parmar, both Shishir Bajpai and Vinay Khattar participated with vigour in the markets. In total, 32 transactions were carried out collectively by Bajpai and Khattar, with 13 on the sell side, and 18 on the buy side. Cumulatively, the two fund managers bought stocks worth Rs 6.29 lakh, and they liquified stocks worth Rs 5.62 lakh.

A strong market closing on Monday buoyed industry sentiment, which, in turn, helped the benchmark S&P CNX 500 index register a 4.75 per cent gain over last Thursday. Bajpai and Khattar performed almost in line with the benchmark, while Khattar’s investments grew 5.12 per cent, Bajpai logged 4.74 per cent gains. Ajay Parmar, who remained on the sidelines, saw a notional gain of 0.87 per cent.

Bajpai booked losses in three of his investments — Sterlite Industries, MOIL and Selan Explorations — for a loss. He let off 330 shares of Selan Explorations at a loss of nearly 14 per cent. He incurred a loss of 11 per cent on his investment in MOIL, and a loss of 9 per cent on his investment in Sterlite Industries. Bajpai’s sale proceeds stood at Rs 3.43 lakh. On the other hand, Bajpai purchased stocks worth Rs 3.47 lakh, almost levelling out his buy-sell transactions. His fresh buys include Websol Energy Systems, for a consideration of Rs 97,500. The stock has already soared 20 per cent from his cost price of Rs 65 per share. Bajpai bought 200 shares of Tata Steel at Rs 609 each, for a total consideration of Rs 1.22 lakh. While Tata Steel has advanced over 3 per cent from his cost price, banking majors, HDFC Bank and SBI have logged gains of 6 per cent and 2 per cent, respectively. Currently, Bajpai’s portfolio reflects a gain of 28 per cent at Rs 12.82 lakh. His investments are valued at Rs 12.69 lakh, wh ich include key frontline stocks like Reliance Industries, Dr Reddy's and HCL Technologies.

SHISHIR BAJPAI, Senior Vice President, IIFL Private Wealth
Top Holdings Cost
price (Rs)
price (Rs)
(Rs lakh)
Reliance Ind 1025.98 977.40 1.27
Tata Steel 608.90 624.40 1.25
SBI 2747.58 2682.50 1.21
HDFC Bank 2085.14 2193.15 1.21
Dr Reddy's 1681.15 1579.35 1.18
Total investments     12.69
Cash      0.13
Net worth     12.82

Khattar was a net buyer of stocks worth Rs 0.63 lakh over the past four trading days. He transacted frequently on the buy side, with thirteen transactions, and sold on seven instances. Most of Khattar's sales attracted losses, with his partial exit from Marg wherein he lost 9 per cent. His exit from Orchid Chemicals fetched him a cumulative loss of 11 per cent. He sold 200 shares of IRB Infrastructure at Rs 186 each, making negligible gains from this transaction, while 20 SBI shares were sold at a profit of only 2 per cent. Tilaknagar Industries was the only stock whose liquidation helped Khattar make a substantial gain of approximately 12 per cent.

AJAY PARMAR, Head Research Institutional Equities, Emkay
Top Holdings Cost
price (Rs)
price (Rs)
(Rs lakh)
Torrent Pharma 599.00 508.10 0.76
Natco Pharma 291.03 248.45 0.68
eClerx Services 546.00 656.25 0.66
Infinite Comp 181.60 158.40 0.48
Insecticides India 233.05 303.85 0.46
Total investments     6.40
Cash      2.84
Net worth     9.24

On the buy side, Khattar has added some heavyweights like Tata Steel, SBI and ITC. Among others he has bought Jet Airways, Coromandel International, Havells India, TTK Prestige and Can Fin Homes. After having liquidated 750 shares of Tilaknagar Industries previously, Khattar re-entered the stock by pursing 700 shares of the company, which is currently trading at a premium of roughly 11 per cent. As of March 3, Khattar's portfolio has appreciated nearly 9 per cent, while he holds Rs 2.63 in cash, his investments are valued at Rs 8.25 lakh.

VINAY KHATTAR, Head – Research of WAIS, Edelweiss
Top Holdings Cost
price (Rs)
price (Rs)
(Rs lakh)
IndusInd Bank 220.68 232.35 1.05
Havells India 305.36 353.40 1.01
Tilaknagar Ind 58.23 65.25 0.95
Dish TV 60.51 61.80 0.77
Tata Steel 614.23 624.40 0.72
Total investments     8.25
Cash      2.63
Net worth     10.88

Ajay Parmar stayed away from the markets for the second week in a row.

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