Reliance Industries and Infosys Technologies have emerged with the highest portfolio weightage in percentage terms under the Morgan Stanley Dean Witter (MSDW) - model portfolio for India.
Both the companies account for 46.40 per cent of the total portfolio weight in percentage terms. The MSDW - model portfolio for India consists of 11 companies, covering eight different sectors. The model portfolio comprises 59.70 per cent of the Morgan Stanley Composite Index (MSCI) weightage.
The report, titled 'start positioning for an industrial turnaround' has been prepared by Ridham Desai, India strategist, and Ajay Kapur, regional strategist for equity research Asia/Pacific region. Reliance Industries has been given the highest portfolio weightage of 23.30 per cent, with a rating of outperformance, while Infosys Technologies has been assigned portfolio weightage of 23.10 per cent with a rating of outperformance, but volatile.
The report has incorporated eight different sectors in its MSDW model portfolio for India. The MSDW model portfolio covers 11 different stocks from various sectors, such as banks, capital goods, diversified financials, food beverages & tobacco, household and personal products, materials, software and services etc.
The MSDW model portfolio for India is bullish on the software and services sector. It has the highest portfolio weightage rating of 42.10 per cent, followed by the materials sector at 27.90 per cent.
However, while assigning the ratings for the software and services sector, the report maintains an outperformance for 3 stocks with clear indications that they are volatile. Infosys, Satyam Computer and Wipro have a portfolio weightage of 23.10 per cent, 9.5 per cent and 9.5 per cent respectively.
Under the materials section, which is the second highest sectoral weightage with 27.90 per cent, Reliance Industries Ltd has a portfolio rating of 23.3 per cent followed by Hindalco Industries with a portfolio weightage rating of 4.7 per cent. However, Hindalco Industries has not been rated.
The other stocks with a portfolio weightage in percentage terms are: ITC with 7.10 per cent outperformance rating, State Bank of India with 6 per cent outperformance rating and Housing Development Finance Corporation with an outperformance rating of 5.70 per cent in the portfolio weightage.
FMCG major Hindustan Lever, has been assigned a lower weightage of 5.60 per cent and has been rated under the neutral category.
While Hindalco has not been rated and has a portfolio weightage of 4.70 per cent. Larsen & Toubro has an outperformance rating with a weightage of 4 per cent, while HDFC Bank has been maintained at 1.50 per cent portfolio weightage with an outperformance rating.
