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Uncertain impact of the Budget

Source : BUSINESS_STANDARD
Last Updated: Sun, Mar 03, 2013 05:16 hrs
Budget: Customs duty on imported luxury goods increased

The markets had a rough ride through the week, with the Bombay Stock Exchange's benchmark indices touching a three-month low twice in five trading sessions. The broader markets crashed after the Union budget failed to cheer the local investment sentiment. On the international front, the markets swung sharply either way on comments from the head of the US Federal Reserve, sparking fears of premature withdrawal of the monetary stimulus.

Four of the six fund managers were active during the week.



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

Prabhakar was inactive for the week. He opines that the budget was a balanced one, with focus on fiscal consolidation, instruments for investment and financial savings, and promotion of skill formation. He considers the fiscal deficit of 4.8 per cent of GDP for FY14 as manageable, given the reduction of non-plan expenditure and increase in tax revenues.

His current top holdings include Dr Reddy's Laboratories, SKS Microfinance, Pfizer, LIC Housing Finance and J K Cements. The net worth is Rs 10.23 lakh, up 2.3 per cent.

SHARDUL KULKARNI
Head, Technical Research,Angel Broking

Kulkarni added Bharat Petroleum while he cleared off ITC during the week. His portfolio now consists of Hindustan Unilever, Hindustan Petroleum Corporation, Bharat Petroleum Corporation, Shree Renuka Sugars and NTPC. The net worth is Rs 11.62 lakh, up 16.2 per cent.

NAVEEN FERNANDES
Fund Manager, Centrum Wealth

Fernandes added names like NMDC, Tata Motors and ICICI Bank during the week. The budget was a job well done on the fiscal front, thus managing to avoid any de-rating by credit rating agencies and also a possible signal for the Reserve Bank to cut benchmark rates, he says. However, the absence of any credible measures for promoting household financial savings, reducing the current account deficit and provisions to provide some boost to capital markets were missing, which he says was a disappointment.

His top holdings include Karur Vysya Bank, MRF, ITC, NESCO and Balmer Lawrie & Co. The net worth is Rs 10.97 lakh, up 9.7 per cent.

KISHOR OSTWAL
CMD, CNI Research

Ostwal was inactive during the week. He believes the finance minister delivered a balanced budget, with efforts to reach fiscal discipline being the hallmark. He believes the fiscal deficit for 2013-2014, at 4.8 per cent, seems achievable.

His portfolio consists of Tata Motors, Reliance Industries, Indian Oil Corporation, Power Finance Corporation and Canara Bank. The net worth is Rs 10.1 lakh, up nearly one per cent.

SACHIN SHAH
Fund Manager, Emkay Investment Managers

Shah balanced his portfolio during the week by booking losses in underperforming names such as AstraZeneca Pharma India and Whirlpool. At the same time, he picked Blue Dart Express and HDFC Bank.

Shah opines, "This year's budget looks much more realistic as compared to last year's. If the government continues to execute as per the plan, overall, it should get the economy out of the woods in the next six t nine months."

His current top holdings include Cipla, ICICI Bank, Divis Laboratories, Biocon and Infosys. The net worth is Rs 10.7 lakh, up nearly seven per cent.

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

Badshah had a couple of sell orders in the form of Oracle Financial Services Software and Century Textiles & Industries. On the Union budget, he says the announcements were not very impressive on the fiscal arithmetic and it loses out on the big picture.

His top holding this week were Maruti Suzuki, Reliance Industries, Wockhardt, United Spirits and Tech Mahindra. The net worth is Rs 11.64 lakh, up 16.4 per cent.

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