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Markets surged over 4% in October to hit fresh record highs after encouraging data from the US and the US Federal Reserve’s decision to end its bond-buying programme allayed fears of a global growth slowdown.
The Narendra Modi government’s slew of reforms for the coal, oil and gas sectors and the recent FDI norms for construction also boosted sentiment. Indian capital goods companies also saw an increase in order inflows signalling the revival of the investment cycle.
Of the four fund managers participating in Smart Portfolios 7, three fund managers – Rahul Shah, vice president-group leader-equity advisory group, Motilal Oswal Securities; Mehraboon J Irani , principal and head - private client group (PCG), Nirmal Bang Securities and Mayuresh Joshi, vice president – institution, Angel Broking are sitting with cash of more than Rs 10 lakh of the Rs 15 lakh virtual portfolio.
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Cumulatively, the four money managers have invested Rs 20.83 lakh in the first month of the new season.
Sachin Shah, Fund Manager, Emkay Investment Managers
Sachin Shah was very active, and executed as many as 22 trades in October 2014. Among the stocks he bought include ICICI Bank, HDFC Bank, LIC Housing Finance, PTC India, Power Grid Corporation, Infosys, IDFC, VIP Industries, Centum Electronics, Mahindra Holidays, Coal India, ONGC, GAIL, Bayer CropScience, Hero MotoCorp, M&M, Lakshmi Machine Works, Gujarat Pipavav Port, Bajaj Corp and LIC Housing.
He recorded a 6.2% return on his investments, compared to a 4.2% gain reported by the benchmark CNX 500. Shah's net worth stood at Rs 15.92 lakh.
Rahul Shah, Motilal Oswal Securities
Rahul Shah conducted a single transaction during the period under review by adding Bank of India in his portfolio. “Strong earnings posted by IT, banking and auto sectors have cheered investor sentiment. The auto sector is bound to remain on the buyer’s radar. The key level to watch out on the Nifty is 8,400. Overall, markets look very attractive with no correction at these levels. One should stay invested and buy good quality stocks on every dip,” says Rahul Shah. He expects the upsurge in the IT stocks to continue with scrips such as HCL Tech, TCS and Wipro leading the gains. Some of his top picks in the market include Eicher Motors, TVS Motors, YES Bank, ICICI Bank, ACC and Ambuja Cements. Shah's net worth was up by 1.69% at Rs 15.25 lakh.
Mehraboon J Irani, Nirmal Bang Securities
Irani was mostly inactive all throughout the month of October. However, during the end of the month he took a significant position in his portfolio by adding IFGL Refractories, SKF India, Alphageo (India), Tata Steel and Tata Power.
He opines that the global factors will continue to have a remarkable impact on the market. Irani's net worth is at Rs 15.33 lakh, up 2.19%.
Mayuresh Joshi, Angel Broking
Mayuresh Joshi is yet to begin trading.
