Two weeks after a catastrophic earthquake and tsunami ravaged north-eastern Japan, markets worldwide were jittery from the ensuing aftershocks. Domestic markets, too, witnessed volatile sessions. However, with rehabilitation and rebuilding activities gathering momentum in the world’s third-largest economy, investor sentiments, globally, stabilised. Back home, the markets gained for three consecutive days, as a result of which the S&P CNX 500 index portfolio value advanced 1.4 per cent over the past week.
For the week under review, Shishir Bajpai and Vinay Khattar participated actively, expediting a total of 59 transactions, with 34 deals made on the sell-side. However, combined, both fund managers were net buyers of stocks worth Rs 14.74 lakh, while they were net sellers of stocks worth Rs 14.66 lakh. Bajpai was a net seller of stocks to the tune of Rs 16,681, while Khattar purchased stocks worth Rs 24,518.
Moving in line with the benchmark index value, Ajay Parmar’s portfolio lodged a gain of 1.6 per cent, while Bajpai's holdings were up 2.6 per cent. Khattar’s investments, although up 1.2 per cent, lagged the benchmark’s performance.
Parmar remained inactive during the week under review. However, his portfolio, which underperformed the benchmark index value the previous week, saw a substantial improvement this time around. Top performers in his portfolio are eClerx Services, Insecticides India, Greaves Cotton and Jubilant Foodworks. A majority of Parmar's investments continue to trade in the negative, with sugar stock Bajaj Hindusthan, at a loss of 40 per cent, proving to be the major dampener in his portfolio. His investments in other sugar stocks like Shree Renuka Sugars and Balrampur Chini Mills also lost flavour, as both the investments reflected substantial losses of 26.6 per cent and 21.6 per cent respectively. At present, Parmar's portfolio, worth Rs 9.32 lakh, shows a decline of 6.84 per cent since inception. He holds Rs 2.84 lakh in cash, and his invested corpus stands at Rs 6.47 lakh.
Khattar was a net buyer, although his sale transactions exceeded his buy-side deals. He exited Tata Steel at a minor loss of 1.9 per cent, while his liquidation of banking stocks, State Bank of India (SBI) and IndusInd Bank, fetched him gain of 1.4 per cent and 9.6 per cent respectively. Khattar also liquidated his holdings in fertiliser stock Coromandel International at a near no profit-no loss level. Khattar’s investment in Havells India, however, was let off at a profit of 13.6 per cent. On the buy side, the fund manager introduced Infosys into his portfolio by purchasing 25 stocks of the IT major at Rs 2,977 each. Financials Dhanlaxmi Bank and YES Bank also found a space in his portfolio. Khattar pocketed 250 shares of newly-listed stock Lovable Lingerie at Rs 266 each. Educational services stock Zee Learn up 16 per cent, garment manufacturer Mirza International, up 8.2 per cent and YES Bank up 5.1 per cent are all above his cost price. With a cash component of Rs 2.7 lakh, and Rs 8.14 lakh invested in stocks such as IDFC, HCC, ITC, Venky's (India) and Opto Circuits among others, Khattar’s investments reflect an appreciation of 8.36 per cent, while his portfolio value stands at Rs 10.84 lakh.
Bajpai exited ICICI Bank partially, by letting off 125 shares of the top-line stock for a total consideration of Rs 1.27 lakh. He still retains 100 shares of the banking major, and this investment is currently quoting above his cost price up 4.1 per cent. Bajpai exited bluechip stock SBI at a negligible loss of 1.5 per cent. Another Sensex stock, Bajaj Auto, was let off at a loss of 1.2 per cent. Moving on to the buy-side, the fund manager introduced oil and gas exploration major and Sensex heavyweight Reliance Industries into his portfoilo, and this stock is currently trading above his cost price of Rs 997 per share. Pharma stock Dr Reddy’s also saw an entry into Bajpai’s portfolio. Amongst the other significant purchases for the week under review, Bajpai pursed 2,000 shares of financial stock IFCI for a total sum of Rs 1.07 lakh. His portfolio, worth Rs 13.27 lakh currently, up 32.71 per cent, comprises a liquid corpus of Rs 2.56 lakh, while Rs 10.71 lakh remains invested in stocks such as Pantaloon Retail, Coal India, ITC, Deccan Chronicle Holdings and MOIL.