Last week, markets started off the August F&O series on a positive note and the rally continued till Reserve Bank of India’s (RBI) policy meet. The RBI kept key policy rates unchanged for the second time since June but slashed the statutory liquidity ratio by one per cent. Adding to this, a drop in India’s export figures dampened sentiment. With the US Federal Reserve offering no new measures to stimulate the economy and no policy action coming from the European Central Bank (ECB), the international markets were subdued.
Two of the four fund managers of Smart Portfolios Season 4 remained active from July 27 - August 2.
SACHIN SHAH
Fund Manager, Emkay
Shah bought a few scrips from the banking and financial side, like Sundaram Finance, ICICI Bank and Bank of Baroda during the week. He also added Maruti Suzuki India. There were no sell calls.
Shah expects the markets to remain range-bound in the near-medium term.On the banking space, he says the risk-management of private sector banks distinctly stands out in the current economic environment. He explains that most of the private sector banks have demonstrated good asset quality and decent growth. In comparison, results of most PSU banks have once again disappointed on stressed assets (NPAs and restructured assets).
| SACHIN SHAH | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| ICICI Bank | 936.52 | 958.90 | 0.72 |
| Havells India | 590.05 | 550.25 | 0.55 |
| Mahindra & Mahindra | 683.65 | 695.60 | 0.52 |
| Bank of Baroda | 675.30 | 656.80 | 0.50 |
| LIC Housing Finance | 243.76 | 261.85 | 0.39 |
| Total investments | 7.06 | ||
| Cash | 2.22 | ||
| Net worth | 9.28 | ||
His top holdings currently include ICICI Bank, Havells India, Mahindra & Mahindra, Bank of Baroda and LIC Housing Finance. Shah’s net worth is valued at Rs 9.28 lakh, down 7.2 per cent.
RIKESH PARIKH
VP (equity strategies),Motilal Oswal Securities
Parikh carried out several transactions on the buy side during the period under review. He added a few rate sensitives like State Bank of India, Tata Motors and Allahabad Bank before the RBI policy. JSW Energy, Emami and Dr Reddy’s Laboratories were also included in his portfolio. According to him, market participants will be closely watching for any announcement from the US Federal Reserve and ECB. Also, the monsoon session with a new cabinet will be watched closely. He believes PSU banks are available at attractive valuations. So, he would continue to hold on to scrips like SBI and Allahabad Bank.
| RIKESH PARIKH | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Engineers India | 240.44 | 237.80 | 0.83 |
| JSW Energy | 51.51 | 51.60 | 0.62 |
| Oberoi Realty | 243.13 | 234.90 | 0.59 |
| Dr Reddys Laboratories | 1641.36 | 1647.00 | 0.58 |
| Tata Motors | 232.41 | 222.70 | 0.56 |
| Total investments | 6.99 | ||
| Cash | 3.32 | ||
| Net worth | 10.31 | ||
His current top holdings include Engineers India, JSW Energy, Oberoi Realty, Dr Reddy’s Laboratories and Tata Motors. Parikhs’s net worth is at Rs 10.31 lakh, up 3.06 per cent.
ASHISH MITTAL
Fund Manager (PMS), Centrum Wealth
Mittal remained inactive during the week. His top holdings, as of now include Balmer Lawrie & Company, Karur Vysya Bank, Tide Water Oil Co (I), Unichem Laboratories and Cairn India.
Mittal is anticipating some significant action from the new finance minister on foreign direct investment (FDI) in multi-brand retail and pending economic reforms. Monsoon has been a failure so far, rating agencies have warned of a downgrade and FDI fell by 59 per cent for the first two months of the current fiscal. Also, exports and manufacturing sector have almost stagnated, he added.
| ASHISH MITTAL | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| Unichem Laboratories | 144.82 | 147.70 | 0.81 |
| Tide Water Oil Co(I) | 6988.28 | 7683.40 | 0.77 |
| Balmer Lawrie & Company | 618.48 | 587.75 | 0.76 |
| Karur Vysya Bank | 372.59 | 412.45 | 0.70 |
| Cairn India | 325.21 | 330.35 | 0.63 |
| Total investments | 8.92 | ||
| Cash | 1.63 | ||
| Net worth | 10.55 | ||
Hence, he believes it is imperative for the government to break the status quo on the economic reforms front. On the basis of this conviction, he will invest in value stocks. Mittal’s net worth stands at Rs 10.55 lakh, up 5.47 per cent.
ALEX MATHEWS
Head (technical and derivatives research),Geojit BNP Paribas Financial Services
There were no transactions for the period under review. His top holdings now include CRISIL, Timken India, Tata Coffee, CMC and Mindtree.
According to Mathews, Nifty is in a consolidating phase, without giving any direction. If it moves above 5267 we can expect an uptrend. On the other hand if it moves below 5176 then we can expect a fall. Compounding to this, the domestic macro scene is not very encouraging. So, are the global cues. Therefore, fresh allocations will be considered only if technical /macro parameters (domestic and international) improve.
| ALEX MATHEWS | |||
| Top Holdings | Cost price (Rs) | Current price (Rs) | Value (Rs lakh) |
| CRISIL | 1,071.07 | 921.95 | 0.83 |
| Timken India | 234.28 | 199.15 | 0.82 |
| Tata Coffee | 954.03 | 952.40 | 0.71 |
| CMC | 968.11 | 989.35 | 0.49 |
| Mindtree | 703.76 | 641.55 | 0.32 |
| Total investments | 3.78 | ||
| Cash | 5.57 | ||
| Net worth | 9.35 | ||
Mathews’ net worth totals Rs 9.35 lakh, down 6.47 per cent.
For Smart Portfolios, visit www.smartinvestor.in/sp
