Through the past month, the 'Namo' factor cast its spell on Indian equity markets, with the benchmark indices registering record highs. Fund managers, meanwhile, carried out some value-buying. However, through the past two weeks, they have turned cautious, choosing to remain on the sidelines, even as the markets edged higher on hopes the state Assembly elections results due on December 8 would ensure victory for the business-friendly Bharatiya Janata Party. (Click here for tables)
ANKIT AGARWAL
Vice-president (fund management), Centrum Broking
Ankit Agarwal carried out numerous transactions during the period under review. He added Cairn India, BASF India, HDFC Bank, CMC and Siemens to his portfolio and accumulated MOIL and JK Tyre & Industries through the past month. At the same time, he sold some of his early buys such as J B Chemicals & Pharamaceuticals, Maruti Suzuki India and Siemens, with nine-30 per cent gains.
From here, Agarwal sees increased bouts of volatility, as foreign institutional investors may remain on the sideline due to possible uncertainty around the US Fed policy, the outcome of the elections, the expected deferral of the interest rate reversal and valuations nearing fair valuations. The recent correction in defensives should be used as an opportunity to build positions in this space, as these may return to favour on the back of increased volatility, he adds. Agarwal's net worth stands at Rs 10.88 lakh, up 8.8 per cent.
SUNIL JAIN
Head, equity research, (retail), Nirmal Bang
Sunil Jain was active, with a series of buy and sell calls. He added Cipla, Escorts, Dewan Housing Finance Corporation, Bharti Airtel, Lakshmi Machine Works, Astra Microwave Products, ITC and Praj Industries. A spike in the Escorts stock offered Jain a good exit; he recorded a handsome 33 per cent gain. His other profitable exits included Dabur India, Dewan Housing Finance Corporation, Balrampur Chini Mills and Lakshmi Machine Works, with gains of up to 8.5 per cent. Jain believes various uncertainties of the recent past---European crises, US debt, tapering of the quantitative easing programme and emerging market currency depreciation---are likely to continue, leading to volatility in the equity market. Therefore, one should hold on to defensives in such a market. Sunil Jain's net worth is Rs 10.77 lakh, up 7.72 per cent.
TAHER BADSHAH
Senior vice-president & co-head (equities), Motilal Oswal AMC-PMS
Taher Badshah was inactive. He believes continuation of the recent rally will be determined by the outcome of state elections during this month and the next, even as global liquidity remains supportive. Badshah's net worth is Rs 10.19 lakh, up 1.92 per cent.
P PHANI SEKHAR
Fund Manger-PMS, Angel Broking
P Phani Sekhar added Cairn India to his portfolio, his only holding as on date.
According to Sekhar, markets will remain choppy due to Assembly elections results and fears of the bond-buying programme in the US being tapered in January gaining ground. The markets may see some downside, as profits may be booked to gain advantage of the recent rally. In such a scenario, defensives may be back in the reckoning.Sekhar's net worth is Rs 10.01 lakh, up 0.11 per cent.
VINAY KHATTAR
Head of research (retail capital markets), Edelweiss Financial Services
Khattar carried out several buy and sell transactions during the period under review. The losses he booked through the last month were balanced out by the gains during the period.
Union Bank of India, Delta Corp, IOC, HPCL, BPCL, Mahindra & Mahindra, Eicher Motors, Idea Cellular, Hexaware Technologies, Hindalco, CESC, Bata India and Rallis India were the stocks added. Khattar says since last two quarters, cyclicals such as auto, metals and capital goods have started outperforming defensives, not only in India, but across Asia-Pacific.
This gives us a sense that this time, the sector rotation is more sustainable, he adds. According to the early signs in capex revival in the metals space, we should start looking at quality companies in non-defensives stocks. Khattar's net worth stands at Rs 10.21 lakh, up 2.08 per cent.
SACHIN SHAH
Fund manager, Emkay Investment Managers
Shah remained inactive during the week. He is cautious, as next week is an event-driven one. He notes a good amount of buoyancy in equity is expected due to strong results in favour of any party. Any fractured mandate from these states may disappoint the market.
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