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Slowdown, global liquidity pumping seen as factors

Source : BUSINESS_STANDARD
Last Updated: Fri, Sep 14, 2012 04:18 hrs

The markets had an eventful week during the period under review (September 7-13), with flat Index of Industrial Production (IIP) data for the month of July and a flurry of announcements to resolve the debt crisis in the Euro zone. Investors remained cautious and booked profits after a six-day rally ahead of the August headline inflation data due Friday and the US Fed’s policy decision. Five of the six fund managers remained active.

A K PRABHAKAR
Sr VP (Equity Research),Anand Rathi Financial Services


Prabhakar picked only Titan Industries during this week, after an aggressive start. However, he used the current rally to book profits in the range of thee to 18 per cent in Engineers India, MOIL, Gateway Distriparks, Zydus Wellness, Speciality Restaurants, HSIL, Tata Consultancy Services, Radico Khaitan and Petronet LNG.

Rural Electrification Corporation and Ranbaxy Laboratories were the only bets cleared off, with a loss of one to two per cent. Prabhakar opines that due to weak manufacturing, the IIP growth target for 2012-13 remains around 4.6 per cent. He is sceptical of the current liquidity-fuelled rally, as he believes that without any significant improvement in the economy or fundamentals, this liquidity only pushes inflation higher. His top holding includes Tata Coffee, Grasim Industries, Aditya Birla Nuvo, Tube Investments of India and BASF India. Prabhakar’s net worth is at Rs 10.31 lakh, up 3.1 per cent.

KISHOR OSTWAL
CMD, CNI Research

Ostwal selected Aban Offshore and Bombay Dyeing & Manufacturing Company for his portfolio. He said the recent IIP numbers suggested the Indian economy continued to remain weak, calling for immediate rate cuts by the Reserve Bank. On the markets, a US Fed decision on quantitative easing and the RBI policy meet will be the major triggers for the markets to move either way. Any disappointment here would see the Nifty correcting by three to four per cent.

Currently, Century Textiles & Industries, Reliance Industries, State Bank of India, BF Utilities and Bombay Dyeing & Manufacturing Company figures are his top five picks. Ostwal’s net worth is at Rs 10.13 lakh, up 1.3 per cent.

NAVEEN FERNANDES
Fund Manager, Centrum Wealth

Fernandes took up ITC, Engineers India and Tide Water Oil Co (I) during the week. He believes unless the rate cycle is reversed, it will be difficult to see a turnaround in IIP numbers. With regard to the markets, he sees monetary expansion in Europe and the expected QE3 decision in the US to provide a boost to liquidity inflows in the medium to long term. As of now, BASF India, ITC, Karur Vysya Bank, Polaris Financial Technology and Hindustan Zinc are his top five holdings. Fernandes’ net worth is Rs 10.32 lakh, up 3.2 per cent.

SHARDUL KULKARNI
Head, Technical Research, Angel Broking

Kulkarni added Venkys (India), Godrej Industries, Delta Corp and Aditya Birla Nuvo to his portfolio. With this, his top five holdings are Godrej Industries, Shree Renuka Sugars, Venkys (India), Delta Corp and Chambal Fertilisers & Chemicals. His net worth is Rs 10.32 lakh, up 3.2 per cent.

SACHIN SHAH
Fund Manager, Emkay Investment Managers

There were no transactions for the week. His top holdings include IDFC, Exide Industries, ICICI Bank, Astrazeneca Pharma India and Zee Entertainment Enterprises. Shah attributes the buoyant market undertone to global liquidity. He adds the recent flat IIP data reinforced the slowdown scenario, highlighting the contraction in investments which would weigh on the overall growth scenario. His net worth is Rs 10.05 lakh, up 0.6 per cent.

TAHER BADSHAH
Sr VP and Co-Head, Equities, Motilal Oswal AMC - PMS

Badshah started making his portfolio during the week under review. His top picks included several banks such as HDFC, HDFC Bank, Kotak Mahindra and State Bank of India. Automobile majors Tata Motors and Maruti Suzuki India were also added.

Among the defensives, he picked ITC, Divis Laboratories, Wockhardt and Shasun Pharmaceuticals. Cummins India, United Spirits, Pidilite Industries, Colgate-Palmolive (India) and Hindustan Zinc were his other buys. Badshah believes the slowdown is gradually extending and is broad-based, which could lead to inflation coming down, prompting RBI to cut interest rates. He adds the market can see a further five to seven per cent rally from the current levels. His top five holdings are HDFC, HDFC Bank, Kotak Mahindra Bank, Divis Laboratories and Tata Motors. The net worth is Rs 10.02 lakh, up 0.2 per cent.




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