Sharekhan top picks-July 2-1010

 

Top Picks [July 02, 2010]  Sharekhan www.sharekhan.com

Summary of Contents   SHAREKHAN TOP PICKS Sharekhan top picks The equity markets in the developed world continued to trade weak in June 2010 as doubts over the sustainability of a recovery in the USA resurfaced and on worries emanating from the Euro zone. Charting a different trend line, many Asian markets outperformed the developed world markets by a wide margin. Where the developed markets posted losses of 3-6%, Asian markets appreciated by 2.5-8.3% with Thailand reporting the highest appreciation (8.3%) followed by India (5.4%). During the period June 01-July 02, 2010, where the Sensex and the Nifty grew by 5.4% each, our recommended portfolio of top picks delivered returns of 2.7%. After comprehensively outperforming the bellwethers for the past three months, our basket of top picks has underperformed them this month due to the defensive composition of the basket keeping the on-going volatility in the markets globally in mind.  On a year-to-date basis, our basket of top picks has given a cumulative return of 6.3% since April 2010, whereas the Sensex and the Nifty has declined by 1.3% and 1.1% respectively. More importantly, our basket has performed consistently and has given an average monthly return of 2.1% with little month-on-month volatility (the monthly return has ranged 1.3-2.7% in the past three months). On the other hand, the market has been highly volatile with the Sensex' and the Nifty's monthly return oscillating between -5.2% to +5.4%.  For our July's top picks basket, we are replacing United Phosphorus, on concerns of weak Q1FY2011, with Genus Power Infrastructures, based on faster than expected stabilisation of its operations post the mishap at its Jaipur facility and attractive valuations. As the equity markets globally continue to remain volatile, we stick to our advice of having some cash at hand to take advantage of the good opportunities that may unfold in the current uncertain market conditions. Click here to read report: Sharekhan Top Picks Attention:  As per SEBI guidelines, clients who want to transact in the Futures & Options segment are required to submit proof of Financial Details. Kindly contact the nearest Sharekhan branch for more information or check the pop-up banner on our website, www.sharekhan.com.   Regards, The Sharekhan Research Team myaccount@sharekhan.com