Fw: Sharekhan Top Picks

 

Top Picks [August 03, 2011]  Sharekhan www.sharekhan.com

Summary of Contents   SHAREKHAN TOP PICKS Sharekhan Top Picks Despite the promising beginning of the month, the benchmark indices failed to break out of the multi-month range on account of an aggressive policy rate hike by the Reserve Bank of India and negative global cues. Consequently, the benchmark indices, the Sensex and the Nifty, declined by 4.4% and 4% respectively since July 1, 2011 when we had last revised the contents of our Top Picks basket. The CNX Mid-Cap Index was more resilient and reported a relatively lower loss of 1.8% for the same period. Compared to benchmark indices, the performance of our Top Picks basket was better as it declined by 2.4% in the same period.  Over the past six months, the Top Picks basket has outperformed the benchmark indices five out of six times and generated cumulative returns of 5.5% as against flat and marginally negative returns of the Sensex and the Nifty respectively. The CNX Mid-Cap Index has appreciated by 4.0% in the same period. The two changes that we have initiated in this month are as follows. We have replaced Lupin with Glenmark Pharmaceuticals (Glenmark) as part of the routine churn within the sector and in view of the better upside potential in Glenmark after the recent revision in its price target. Second, CESC has come in place of Federal Bank, which disappointed with higher than expected slippages in Q1FY2012. On the other hand, CESC is our value pick in the utilities segment where we anticipate some positive policy actions.  Click here to read report: Sharekhan Top Picks       Regards, The Sharekhan Research Team myaccount@sharekhan.com  www.sharekhan.com to manage your newsletter subscriptions