Like every year, Smart Portfolios began with its new (sixth) season with some fresh participants since last week. With a total sum of Rs 10 lakh, each fund manager will attempt to make best of the sum and in the process, beat the benchmark index, S&P CNX 500.
Sachin Shah from Emkay Investment Managers and Taher Badshah of Motilal Oswal AMC- PMS from Season 5 are continuing for Season 6. Of the six participants, only three have started with their trades. Out of the three active players, Sunil Jain and Ankit Agarwal have managed to pull through some gains in the starting fortnight. (Click for table)
Badshah started the season by adding Britannia Industries, Divis Laboratories, Tata Motors and Cairn India to his portfolio.
Head- equity research- retail, Nirmal Bang
For Jain, Balrampur Chini Mills, ITC, YES Bank and Federal Bank proved to be a boon, helping him gain the early lead.
Jain is of the view that markets are likely to move into a consolidation phase. The likely triggers (local) that can move the markets are movement in currency, movement in shorter interest rate and expectation building around Q2 result.
Vice-president-fund manager, Centrum Broking Ltd
Agarwal, the most active of the lot, executed a series of 'buy' calls over the last fortnight. Some of his most prominent buys were L&T Finance Holdings, Colgate-Palmolive, Oracle Financial Services Software, Apollo Hospitals, MphasiS, J B Chemicals & Pharmaceuticals and Tata Coffee.
He believes the markets could be volatile from mid-October with a negative bias around the announcement of Q2 results. Some of the pressure points, according to Shah, will be weak corporate results, expansion in fiscal deficit numbers for Q2, increased global volatility as the deadline for the US debt ceiling nears and possible announcement of the schedule of general elections.
He is of the view that MNC stocks are likely to be in focus, as the combined effect of share price fall and currency depreciation would make them attractive for the parent firms to increase stake in the company.
Head of research, retail capital markets, Edelweiss Financial Services
Khattar hasn't executed any trades.
Fund Manager, Emkay
Shah has been inactive since the start of the season.
Shah is cautious of the market environment as he believes Nifty is likely to move in a trading zone of 5,750-6,000 in the near term.
The cues for the equity market's direction will be taken from stability in bond and currency markets, he adds.
Watch out for the global oil prices movement which can be a possible dampener.
P PHANI SEKHAR
Fund Manager-PMS, Angel Broking
Sekhar is yet to start building his portfolio.
Sekhar expects the markets to remain volatile as the recent rally in interest rate sensitives makes way for defensives. Going ahead, he believes it will be a contest between global liquidity and domestic data points. In the meantime, some of the triggers that could aid the markets to move either ways would be the Fed tapering and inflation data, along with policy response from New Delhi to control fiscal deficit.