Markets posted their third-straight weekly gains on hopes of global growth recovery after the central bank’s monetary policy easing. Risk appetite improved after the US Federal Reserve and European Central Bank kept the monetary policy loose to support flagging growth.
Back home, the Reserve Bank of India in its monetary policy review on Friday reduced repo rates by much-anticipated 25 basis points but hinted towards little room for future policy easing.
Four of the six fund managers remained active over the last three weeks.
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A K Prabhakar, Senior Vice President (Equity Research), Anand Rathi Financial Services
Prabhakar added Reliance Capital to his portfolio while he sold out of JSW Steel, Hindustan Unilever and TVS Motor Company.
Prabhakar opines that inflation would a key factor for both the markets and RBI going forward as it expected to be around 5% in next couple of months. This softening will give enough room to RBI to act on rates in the future. There would be profit booking to levels of 5700, if the Nifty fails to cross the levels of 6,035 over the next few days.
Currently his portfolio consists of Dr Reddy’s Laboratories, Cummins India, Reliance Capital, LIC Housing Finance and Natco Pharma.
Prabhakar's net worth was up by 4.94% at Rs 10.49 lakh.
Shardul Kulkarni, Head - Technical Research, Angel Broking
Kulkarni sold off his entire portfolio a week before the Policy as he was and is still expecting a major correction in the markets. Tech Mahindra, Jubilant Foodworks and Hindustan Unilever are his only holdings currently.
According to Shardul, the markets have not seen a broad based rally as the small and mid cap counters continue to underperform the benchmark indices. Also, with all the major economic events and the quarterly results out of the way, there are no major triggers to look forward to in the near term. Considering these, and the fact that markets have gained 10% in three weeks, it’s time to book profits.
Kulkarni's net worth was up 23.89% at Rs 12.39 lakh.
Naveen Fernandes, Fund Manager, Centrum Wealth
Fernandes added Reliance Industries to his portfolio.
Even thought the RBI disappointed with only a 25 bps rate cut, Fernandes is optimistic that markets will recover as interest rate softening will continue, commodity prices is subdued and monsoons are normal (forecasts) thus far. Adding to this, the base effect will drive down inflation numbers over the next couple of quarters.
His top holdings include Karur Vysya Bank, MRF, ITC, NESCO and Balmer Lawrie & Company.
Fernandes' net worth stands at Rs 11.51 lakh, up 15.13%.
Kishor Ostwal, CMD, CNI Research
Ostwal continues to remain inactive.
Ostwal is of the opinion that a correction till the levels of 5,850 on the Nifty cannot be ruled out, before stabilising and rising again. The range of 5,800 -6,120 will be decisive. He believes that RBI's course of action in the form of a rate cut was a right prescription. A further fall in inflation is now the key, to move the markets, which may happen due to cooling commodity prices and a cut in petrol rates.
His holdings are Indian Oil Corporation, Reliance Industries, Power Finance Corporation, Tata Motors and Karnataka Bank.
Ostwal's net worth slipped and is at Rs 10.04 lakh, up 0.41%
Sachin Shah, Fund Manager, Emkay Investment Managers
Shah made a single move in the form of selling ITC last week, pocketing over 17% gain.
Shah expects markets to correct in the near term as RBI's outlook and future course of action was not very optimistic as far as future rate cuts in the near to medium term were concerned..
As of now, his holding constitutes ICICI Bank, HDFC Bank, Cipla, Divis Laboratories and Biocon.
Shah's net worth is at Rs 11.11 lakh, up 11.09%
Taher Badshah, Senior Vice-President and co-head equities, Motilal Oswal AMC- PMS
Badshah was inactive over the last three weeks.
His top holdings include Maruti Suzuki, Kotak Mahindra Bank, Tech Mahindra, United Spirits and DLF.
Badshah's net worth is at Rs 11.79 lakh, up 17.85%.
