| Expecting correction, fund managers prune exposure to mid-caps |
| Shilpa Johnson / Mumbai February 24, 2012, 0:34 IST |
Markets witnessed correction, as the futures & options for the February series expired this week. Rising crude oil prices also added to the woes. The fund managers of Smart Portfolios’ Season 4 comment on their portfolios and individual strategies.
For the week, Rikesh Parikh’s net worth stands at Rs 1028,000, up 2.8 per cent; Ashish Mittal’s net worth is at Rs 1038,000, up 3.81 per cent; Alex Mathews’ net worth is at Rs 1070,000, up 7.01 per cent; and Ajay Parmar’s net worth totals Rs 1135,000, up 13.52 per cent.
RIKESH PARIKH
VP (equity strategies), Motilal Oswal Securities
As the markets had been rallying, Parikh reduced exposure to mid-cap stocks and increased exposure to defensives, mainly pharmaceuticals and HDFC. “As the run-up in the markets had been fast, I was expecting a correction. So, I reduced position and sold Mcleod Russel and United Phosphorus. Meanwhile, I invested in defensive stocks Dr Reddy’s, Cadila and HDFC,” he said.
His top holdings, as of today, include Cadila Healthcare, Mahindra & Mahindra, Pidilite Industries, Bharti Airtel and Power Grid Corporation of India.
| RIKESH PARIKH | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Cadila Healthcare | 716.94 | 712.35 | 0.46 |
| Mahindra & Mahindra | 701.00 | 724.25 | 0.44 |
| Pidlite Industries | 144.72 | 151.65 | 0.38 |
| Bharti Airtel | 347.57 | 350.35 | 0.35 |
| United Phosphorous | 150.43 | 167.30 | 0.34 |
| Total investments | 3.45 | ||
| Cash | 6.88 | ||
| Net worth | 10.33 | ||
ASHISH MITTAL
Fund Manager (PMS), Centrum Wealth
Mittal sees reversal of monetary parameters like cash reserve ratio and interest rates providing positive triggers to the markets. Apart from this, he expects the appreciation of the rupee by eight per cent during the calendar year to have a major positive impact on markets globally. “I expect the rupee to remain strong during 2012. The reversal of tough monetary policies will continue. I hope the positives will be reinforced by a normal monsoon and reasonable crude oil prices,” he said.
“The next financial year, just 38 days away, is likely to have a much better economic scenario, compared to 2011-12. The prime minister’s economic advisory council is among several economic expert bodies to have forecast better growth for 2012-13. While the overall gross domestic product (GDP) growth is estimated to be in the range of 7.5 to eight per cent, the industrial GDP is expected to improve significantly to seven per cent in 2012-13, from 4.3 per cent in 2011-12,” he said.
According to him, a significant improvement expected in the industrial GDP is positive for the corporate sector and hence, for domestic equities. “With the reversal of monetary parameters, growth will be better in 2012-13 and the fiscal condition would also improve. Hence, I reiterate my optimism and stay positive on the economy and markets,” Mittal said.
| ASHISH MITTAL | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| MRF | 6816.10 | 9585.65 | 0.77 |
| Balmer Lawrie & Company | 618.48 | 557.10 | 0.72 |
| Karur Vysya Bank | 372.59 | 390.20 | 0.66 |
| Tide Water Oil | 6751.40 | 7616.85 | 0.61 |
| Bharat Electronics | 1582.70 | 1522.75 | 0.61 |
| Total investments | 9.42 | ||
| Cash | 0.96 | ||
| Net worth | 10.38 | ||
Mittal’s top holdings, as of today, include MRF, Balmer Lawrie & Company, Karur Vysya Bank, Tide Water Oil and Bharat Electronics.
ALEX MATHEWS
Head (technical and derivatives research), Geojit BNP Paribas Financial Services
Mathews was expecting a correction ahead of the February expiry, so he cut down his portfolio and earned profits. “I exited Mahindra & Mahindra, IB Real Estate, Strides Arcolab, ICICI Bank, Adani Enterprises, Hero Motors and Bajaj Auto, etc. Currently, I am holding cash worth 80 per cent and would turn buyers in the new series,” he said.
Mathews said he would concentrate on rate-sensitive sectors like realty, infrastructure, banking and auto, along with some non-index stocks, after the technical correction. His current top holdings include Infosys, Tata Consultancy Services and TTK Healthcare.
| ALEX MATHEWS | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Infosys | 2956.07 | 2933.15 | 0.97 |
| TCS | 1250.07 | 1259.80 | 0.95 |
| TTK Healthcare | 463.10 | 430.65 | 0.43 |
| Total investments | 2.34 | ||
| Cash | 8.36 | ||
| Net worth | 10.70 | ||
AJAY PARMAR
Co-head (investment banking), Emkay Global
Parmar remained inactive for the second consecutive week. Having adopted a defensive strategy, he had booked profits on most stocks that had been a part of his portfolio. “As of now, Lovable Lingerie is the worst performer in my portfolio, whereas HDIL and Insecticides are doing fairly better,” he said.
Parmar has a mix of defensive and aggressive stocks in his portfolio. “I prefer having a proper balance of the two and for now, I’d like to wait for a further 100-150-point fall in the Nifty,” he said.
| AJAY PARMAR | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Lovable Lingerie | 417.64 | 390.30 | 0.51 |
