Political uncertainty, basket-selling by FIIs weigh on markets

The benchmark indices slumped over two per cent in the week to April 5, amid continued political uncertainty and basket-selling by foreign institutional investors (FIIs). There was weakness in the global markets, too, as the US jobless claims shot up to a four-month high, along with the service sector expanding at a slower pace than expected. Only two of the six fund managers remained active during the week.

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

Prabhakar did some value buying in the form of Everest Industries, JSW Steel and TVS Motor Co. According to him, FIIs, selling over the last few days triggered weakness and with the post-Cyprus deposit tax and local political uncertainty, the selling pressure spread to large caps. If the Nifty closes below 200 DMA (daily moving average) for another two-three days, then another six-eight per cent correction is possible. Currently, his portfolio consists of Dr Reddy's Laboratories, SKS Microfinance, Pfizer, Everest Industries and Natco Pharma. Prabhakar's net worth was up 1.5 per cent, at Rs 10.15 lakh.

SHARDUL KULKARNI
Head, Technical Research, Angel Broking

Kulkarni feels there is quite a bit of fear in the markets due to political uncertainty and currency weakness. From the valuation perspective, it's not worrisome, but due to the slowdown, it could take a while before earnings see an uptick. Titan Industries, BOC India, Bharat Petroleum Corp, Shree Renuka Sugars and NTPC are his top holdings. Kulkarni's net worth has improved to Rs 11.65 lakh, up 16.5 per cent. (Click here for tables)

NAVEEN FERNANDES
Fund Manager, Centrum Wealth

Fernandes opines the sell-off in markets is mainly due to recent political developments and a soaring current account deficit (CAD). A further downside depends on the monsoon forecast and the government's ability to control import of gold, which accounted for almost 50 per cent of CAD during the first nine months of FY2013. Any failure in these two areas can lead to significant downside.

His top holdings include Karur Vysya Bank, MRF, ITC, Nesco and Hindustan Zinc. Fernandes' net worth stands at Rs 10.69 lakh, up 6.9 per cent.

KISHOR OSTWAL
CMD, CNI Research

Ostwal sees the 200 DMA is a very good support level for the markets and expects it will hold. He notes FIIs were net buyers till 6,100 but have now turned sellers and there is no counter to hold them. If we close below 5,550, then 5,200 is possible. His holdings are Indian Oil Corp, Reliance Industries, Power Finance Corp, Canara Bank and Karnataka Bank.

Ostwal's net worth slipped and is at Rs 9.66 lakh, down 3.4 per cent

SACHIN SHAH
Fund Manager, Emkay Investment Managers

Shah was active during the week, with a series of sell calls. He booked profits in Tech Mahindra, Zee Entertainment, Hathway Cable and Datacom and Sun Pharmaceuticals.

As of now, his holding constitutes ICICI Bank, HDFC Bank,Cipla, Divis Laboratories and Infosys.

Shah's net worth is Rs 10.63 lakh, up 6.3 per cent.

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

The current market fall is attributable to a combination of weak macro data relating to the current account and reversal of FII flows. Near-term market movement will continue to be guided by the direction of foreign flows, given absence of domestic participation, says Badshah. His top holdings include Maruti Suzuki, Infosys, Tech Mahindra, United Spirits and Reliance Industries.

Badshah's net worth is Rs 11.18 lakh, up 11.8 per cent.

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