Fw: Sharekhan Top Picks

 

 

Top Picks [November 05, 2011]  Sharekhan www.sharekhan.com

Summary of Contents   SHAREKHAN TOP PICKS Sharekhan Top Picks The market surprised positively last month and the benchmark indices, Sensex and Nifty, registered gains of 6.8% and 7% respectively since our last revision in the Top Picks basket. The upsurge was more pronounced in the large caps with the CNX Midcap Index reporting a relatively lower gain of 3.2% for the same period. Given the mix of large-cap and mid-cap stocks in it our Top Picks basket performed better than the CNX Midcap Index with a gain of 4.4%. But it relatively underperformed the benchmark indices after outperforming them smartly for seven consecutive months. In this month, we are making two changes in the Top Picks basket. We are introducing PTC India in place of CESC as part of the churn within the power sector. Despite being undervalued, PTC India was languishing due to concerns related to the health of the state electricity boards (SEBs), the buyers of electricity. These concerns could now get mitigated by the recent move by the SEBs to increase tariffs. Another change involves the replacement of Orient Paper and Industries with IL&FS Transportation Networks. Orient Paper and Industries reported strong quarterly results but the higher than expected pressure on its margins is a cause for concern and limits the upside in the near term. On the other hand, IL&FS Transportation Networks is our top pick in the infrastructure sector, which could see some improvement in sentiments due to a possible progress in execution accompanied by a pause in interest rate hikes. Click here to read report: Sharekhan Top Picks       Regards, The Sharekhan Research Team myaccount@sharekhan.com