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Time for some value buying

Jinsy Mathew/Mumbai 06 Jul 12 | 12:53 AM

Value buying in mid-cap and small-cap shares in an otherwise range-bound market was the hallmark of the period under review. Meanwhile, there was some good news on the macro front. In June, factories stepped up production and hired workers at the fastest rate in two years and the services sector expanded for the eighth straight month, although at a slower rate.

All four fund managers of Smart Portfolios Season 4 remained active between June 28 and July 5.

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RIKESH PARIKH
VP (equity strategies), Motilal Oswal Securities
Parikh carried over a dozen transactions during the period under review. He bought Cairn India,State Bank of India, Lupin, Deepak Fertilizers & Petrochemicals, ITC, Hindalco Industries, Eicher Motors, Oberoi Realty and Jaiprakash Associates. However, JSW Energy, Petronet LNG, Bajaj Auto and Hindalco Industries were squared off.

He believes the broader markets’ rally will continue, as valuations are attractive. Also, a range-bound market creates trading opportunity in different sectors, so getting into defensives is not wise. His current top holdings include HCL Technologies, ICICI Bank, Hindalco Industries, Lupin and Oberoi Realty.
 

RIKESH PARIKH
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Lupin  538.82 540.40 0.67
HCL Technologies  495.96 492.45 0.62
ICICI Bank  853.73 920.85 0.55
Hindalco Industries  123.81 125.45 0.50
Oberoi Realty  244.11 243.80 0.49
Total investments     6.64
Cash      3.67
Net worth     10.31

His net worth is Rs 10.31 lakh, up 3.2 per cent.

ASHISH MITTAL
Fund Manager (PMS), Centrum Wealth
Mittal carried out three transactions during the week. Wyeth and Cairn India figured on the buy side, while ITC was on the sell side. He says the broader markets will continue to outperform if rainfall improves. Also, positive triggers like implementation of foreign direct investment in multi-brand retail and the passage of pending economic bills during the monsoon session of Parliament hold the key to further upside. He is looking to gradually increase his high beta exposure, based on the monsoon’s progress.

His current top holdings include Balmer Lawrie & Company, Tide Water Oil, Bombay Burmah Trading Corporation, Karur Vysya Bank and Unichem Laboratories.
 

ASHISH MITTAL
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Balmer Lawrie & Company 618.48 598.90 0.78
Tide Water Oil Co (I) 6988.28 7645.95 0.76
Bombay Burmah Trading Corp 490.42 591.45 0.74
Karur Vysya Bank 372.59 430.15 0.73
Unichem Laboratories  144.82 132.70 0.73
Total investments     9.28
Cash      1.31
Net worth     10.59

Mittal’s net worth stands at Rs 10.59 lakh, up six per cent.

ALEX MATHEWS
Head (technical and derivatives research), Geojit BNP Paribas Financial Services
Mathews added six scrips to his portfolio during the period under review. He bought Britannia Industries, Bajaj Holdings & Investment, Mcleod Russel India, Development Credit Bank, Mindtree and CRISIL.

He believes the ongoing rally might continue for some more time, on expectations of sustained FII fund inflow, a strong rupee and expectations of the Prime Minister speeding reforms. Also, a probable rate cut from the European Central Bank and policy measures to tackle unemployment by the US government might boost equity markets.

High betas are the most favourable, as valuations are attractive and many of the high beta stocks have already breached their key resistance levels. His current top holdings include Tata Coffee, CRISIL, Mcleod Russel, Development Credit Bank and Britannia Industries.
 

ALEX MATHEWS
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
Tata Coffee  954.03 969.55 0.97
CRISIL  1071.07 1061.20 0.96
Mcleod Russel India  300.70 313.05 0.93
Development Credit Bank  44.96 45.80 0.92
Britannia Industries  540.80 534.80 0.80
Total investments     9.71
Cash      0.17
Net worth     9.88

Mathews’ net worth totals Rs 9.88 lakh, down 1.2 per cent.

AJAY PARMAR
Co-head (investment banking), Emkay Global
Parmar carried out 19 transactions during the week. He bought several names across the broader markets. Some of these were Sintex Industries, Zee Learn, Bata India, Titan Industries, Century Textiles & Industries, Bombay Dyeing & Manufacturing Company, Axis Bank, GMR Infrastructure, Arshiya International, Mindtree, Divis Laboratories, GMR Infrastructure, Indiabulls Power and Adani Enterprises Ltd. The only sell call was on Strides Arcolab.

He sees that the market recovery is unsustainable, as it is based on temporary solutions to the euro issue. Meanwhile, recovery in the Indian currency will give a small window of opportunity to traders for short-term long positions. Adding to these fundamentals might improve over the next three to six months, so one can look towards reducing their defensive stances in the coming days.

His current top holdings include State Bank of India, Adani Enterprises, Havells India, GMR Infrastructure and Essar Oil.
 

AJAY PARMAR
Top Holdings Cost
price (Rs)
Current
price (Rs)
Value
(Rs lakh)
State Bank of India 2,167.28 2,233.45 0.89
Adani Enterprises  239.45 238.90 0.60
Havells India 

590.05

578.05 0.58
GMR Infrastructure  25.66 26.85 0.54
Essar Oil  53.18 58.50 0.44
Total investments     9.76
Cash      0.16
Net worth     9.92

Parmar’s net worth is valued at Rs 9.92 lakh, down 0.8 per cent.


 

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

Sensex

Company Price Gain (%)
Tata Power Co.91.754.14
Hindalco Inds.165.553.37
Infosys4,273.903.08
Tata Steel476.603.00
ICICI Bank1,772.952.25

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