 "Expect Nifty at new highs in 1-2 months: A K Prabhakar")
A K Prabhakar, senior vice-president (equity research), Anand Rathi, has been an active investor through the season, braving the market conditions. Through the last three weeks, his portfolio has taken a negative turn. In an interview with Jinsy Mathew, he shares his outlook on markets and his thoughts on the stocks he owns. Edited excerpts:
What has been your winning strategy so far this season?
The winning strategy has been early investments in Tata Coffee, Bayer Corp, Jammu & Kashmir Bank, etc. But now, things have changed---even quality stocks are not performing in the current market.
YES Bank has been a huge drag on your portfolio. Are you looking to hive off some holdings?
I am not worried about the recent fall in the YES Bank counter, which has corrected 23 per cent this month. We have a target of Rs 700 in the next 12months. I would have accumulated the stock, had I not hit the limit one can allocate in a single stock.
Financial services accounts for a major chunk of your portfolio. In the current market environment, these stocks have taken a beating. Would you book losses or stay put?
I will stay put. There are a few banks and mid-cap financial companies such as LIC Housing Finance, which faced massive value erosion. These, I think, would be the first to recover when the tide turns around.
If you were to rejig your portfolio, what would be the top buy/sell?
Currently, I have no holding in information technology (IT). But I strongly believe IT is one space that would see an uptrend. Therefore, I would add names such as Infosys and TCS to my portfolio.
What is your outlook on the market for the rest of the year?
I believe we are a few months away from an all-time high. Currently, I am fully invested, as I feel there is a good chance the Nifty would cross its all-time high sometime in one-two months. Then, mid-cap stocks would start outperforming the Sensex. Therefore, I am heavily invested in the mid-cap space.
What are your expectations from the Reserve Bank of India (RBI)'s coming policy review?
Best said, the RBI policy would be a non-event, as whatever had to be done has already been said and done.
What has been your winning strategy so far this season?
The winning strategy has been early investments in Tata Coffee, Bayer Corp, Jammu & Kashmir Bank, etc. But now, things have changed---even quality stocks are not performing in the current market.
YES Bank has been a huge drag on your portfolio. Are you looking to hive off some holdings?
I am not worried about the recent fall in the YES Bank counter, which has corrected 23 per cent this month. We have a target of Rs 700 in the next 12months. I would have accumulated the stock, had I not hit the limit one can allocate in a single stock.
Financial services accounts for a major chunk of your portfolio. In the current market environment, these stocks have taken a beating. Would you book losses or stay put?
I will stay put. There are a few banks and mid-cap financial companies such as LIC Housing Finance, which faced massive value erosion. These, I think, would be the first to recover when the tide turns around.
If you were to rejig your portfolio, what would be the top buy/sell?
Currently, I have no holding in information technology (IT). But I strongly believe IT is one space that would see an uptrend. Therefore, I would add names such as Infosys and TCS to my portfolio.
What is your outlook on the market for the rest of the year?
I believe we are a few months away from an all-time high. Currently, I am fully invested, as I feel there is a good chance the Nifty would cross its all-time high sometime in one-two months. Then, mid-cap stocks would start outperforming the Sensex. Therefore, I am heavily invested in the mid-cap space.
What are your expectations from the Reserve Bank of India (RBI)'s coming policy review?
Best said, the RBI policy would be a non-event, as whatever had to be done has already been said and done.