Fund managers wary of markets in short term

By : SI Team
Last Updated: Fri, Nov 25, 2011 05:31 hrs
Asia funding markets feel pain, worse to come

The markets remained extremely volatile in the past week due to a declining rupee and the euro zone debt crisis, among others. Meanwhile, rolling over of positions in the futures and options segment by traders today weighed on investor sentiment. While the Sensex went below the 16,000 mark, the Nifty hit its 22-month low. The portfolios of Smart Portfolios' fund managers reflected the volatility in markets.

As of today, Rikesh Parikh's net worth stands at Rs 964,000, down 3.59 per cent; Mehraboon Irani's net worth is valued at Rs 863,000, down 13.67 per cent; Ashish Mittal's net worth is at Rs 936,000, down 6.37 per cent; Alex Mathews' net worth is at Rs 992,000, down 0.85 per cent; and Ajay Parmar's net worth totals Rs 993,000, down 0.75 per cent.

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(vice-president, equity strategies, Motilal Oswal Securities)
Commenting on the near-term outlook for the market, Parikh said, "Any sharp spike in the crude oil price in the short term, coupled with Parliament paralysis, can lead to increased stress for the economy, which may further lead to the downgrading of domestic equity markets."

"The Sensex is trading at sub-16,000 levels. However, we expect the equity market index to bounce back from the current level," he added.

Past week, Parikh made two transactions, both on the sell side. While he incurred a loss of 20 per cent on Sintex Industries, he made a loss of seven per cent on Pantaloon Retail. His top five holdings are Coal India, Bharti Airtel, Mcleod Russel India, BHEL and Deepak Fertilisers & Petrochemicals Corp.

(principal & head, private client group, Nirmal Bang Securities Pvt Ltd)
"Sell. Sell. Sell. When the markets are so volatile, this is the only thing I would like to tell the reader," said Irani.

During the period, Irani made 20 transactions. His purchases included Pipavav Defence & Offshore Engineering Company, S Kumars Nationwide, Hindalco Industries, Educomp Solutions, Hindalco Industries and Godrej industries. He booked profits of three per cent on selling Zee Entertainment Enterprises. He incurred losses of 37 per cent and 41 per cent on exiting Educomp Solutions and Autoline Industries, respectively.

His top five holdings are Idea Cellular, Bharti Airtel, Vivimed Labs, Arshiya International and Delta Corp.

(fund manager- PMS, Centrum Wealth)
Mittal made one transaction on the buy side past week. He purchased MRF. His top five holdings include Balmer Lawrie & Company, MRF, KA5V1BK2, Bharat Electronics and EID Parry.

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(head of technical and derivatives research, Geojit BNP Paribas Financial Services Ltd)
Mathews made two transactions past week. He exited Bajaj Financial Services and Ranbaxy Laboratories.

Tata Coffee, Larsen & Toubro, Bajaj Financial Services and Ranbaxy Laboratories are his top holdings.

(head, institutional research, Emkay Global)
Parmar carried out one transaction past week. He exited Sintex Industries and booked a loss of 31 per cent.

Overall in his portfolios, on having let go of MMTC, Ipca Laboratories and Larsen & Toubro, he incurred losses of 6-12 per cent each. However, he booked gains of one-three per cent on selling Hero MotoCorp and Coromandel International. His top holdings are DLF, Havells India and Sintex Industries. Parmar said, "I see a lot of uncertainty in the markets as of now and that is why I have cut down things to a minimum."

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