We are reducing exposure to defensives

Amid recent nifty buy sell chart market rally, international rating nifty signals agency S&P's note on India dented sentiments for a day. Indian stock markets resumed upward move on hopes of interest rates cut from RBI and anticipation of government coming back into action. However, RBI kept rates unchanged thrashing market's expectations given the prevailing high inflation. In a conversation with Chandan Kishore Kant, the chief investment officer of SBI Mutual Fund, Navneet Munot, says not much attention needs to be given to S&P warning as it won't impact his investment decisions. According to him this is the best time to invest in equities.


RBI gets over-burdened on both sides, in terms of dealing with inflation as well as slowdown. The larger responsibility should lie with the fiscal action. Lack of nifty buy sell signals policy actions and execution from the government are the key reasons behind deceleration of growth. So, that's where the larger response is needed. RBI can only support those initiatives through monetary commodity charts policy but cannot be the big driver. Given the pressure which is building because of the acceleration in slowdown, I think some actions would be initiated which the markets have not been expecting at all.


Stock markets had turned too bearish. Now, there are signals that situation in Europe may not be as worse as was feared earlier. That's giving hopes to the markets and we saw a little recovery too. Having said that, we must acknowledge that economic data has been coming quite weak. However, my sense is that it is going to lead to some action from the government which was missing, and caused concerns for investors.


We are far more bottom up in our approach than taking a top down call on sectors. We like consumer space, but there are lot of companies in the sector where the valuations have become quite rich and we have trimmed those holdings. But we have been structurally bullish on consumption theme. So far, we had the preference to have more defensives in our portfolio like health care, consumer goods and non-cyclicals. But now our incremental bias is to add cyclicals and rate sensitives. Our view of staying with the consumption and exports played out well. Also, the over riding factor was focusing on companies with stronger balance sheets and visible cash flows. That played out very well. Going forward we will look at adding beta in the portfolio and are in a mcx commodity charts process of reducing exposure to defensives.


Honestly, I do not agree with that. If we look at the debt-to-GDP ratio of several other economies, which enjoy higher ratings, India is definitely structurally poised for higher growth than those economies. Putting these factors together, India does not deserve a junk status when several economies in Europe which are at the brink of default enjoy higher nifty buy sell chart ratings.

Not really. I don't think we would pay so much attention to it. Historically we know that rating agencies are behind the curve almost everywhere. I think commodity charts markets are much smarter in terms of valuing these events and realities.

Generally, we have been staying away from the metal space. And that helped us since most of the metal companies did not do well. We are still cautious on metals as we expect more severe slowdown in China. Though some of the domestic plays could be worth looking at.

One of the deterrents towards getting inflows into equities is that over the last couple of years investors have not made money in equities which has impacted sentiments. The alternatives, like fixed income, are offering decent returns. Bulk of the savings has gone into real estate and gold. Historically, we have seen when fixed income returns look very attractive relative to equities, that is probably the best time to put money in equities also. And I think we are currently in a similar situation where equities look good. It's a right time to build equity assets and one should start investing in equities.

But cancellations of equity investment through systematic investment plans (SIPs) are on the rise.
Investors must keep a discipline of asset allocation and I think equity markets will offer decent returns as risk-reward ratio looks good. Valuations look reasonable compared to historical nifty signals averages. I strongly advocate that investors should not stop SIP and continue their faith in the potential of equity markets.

mcx commodity charts Markets ended lower on Monday as investors turned cautious and booked profits ahead of the RBI monetary policy review on Tuesday. FMCG majors coupled with bank shares contributed the most to the decline.

The 30-share Sensex ended down 113 points at 20,570 and the 50-share Nifty closed 44 points lower at 6,101.

nifty buy sell chart Reports suggest that the central bank may hike repo rate by 25bps as inflation continues to remain high.

Most Asian markets ended with gains on Monday nifty buy sell signals tracking Friday's gain on Wall Street. Japan's Nikkei gained the most rebounding from Friday's 3% decline on value buying at lower levels and a weaker yen. The Nikkei ended up 2.2%. Among other commodity charts indices in the region, Shanghai Composite, Hang Seng and Straits Times ended marginally higher.

The rupee recovered from the day's low and was unchanged at 61.46 versus its previous close of 61.46/47 and is off the session high of 61.35. Earlier, the rupee had weakened tracking weakness in equities with sentiment remaining cautious ahead of the Reserve Bank of India's monetary mcx charts policy review on Tuesday.

FMCG nifty buy sell signals  index was the top loser among the sectoral indices on the BSE down 2.6% followed by Realty, Metal, Power, Bankex and Healthcare indices down 1-2% each.

ITC ended down 3.6% contributing the most to the Sensex decline after reporting lower than expected revenue and net profit growth for the second quarter ended September 2013 (Q2).

The cigarette-to-hotels major’s net sales were disappointing at 8.8% year on year (yoy) to Rs 7,776 crore, which was below an average analysts estimate of Rs 8,087 crore.

While cigarettes business posted a modest top-line growth of 10% yoy impacted by higher than expected de-growth in mcx charts volumes, the growth in other FMCG business too tapered to 16.1% yoy due to sluggishness in demand.

Hindustan Unilever ended down 0.8% on profit taking after recent gains in the run up to its second quarter earnings.

In the banking space, SBI, HDFC Bank and ICICI Bank ended 0.7-2.4% lower.

Other Sensex losers include, Tata Steel and Sesa Sterlite which ended down 3-3.3% each.

Oil and gas nifty live chart with buy sell signals shares such as Reliance Industries and ONGC were among the Sensex gainers along with HDFC and Larsen & Toubro.

Among other nifty signals shares, Tata Elxsi surged 14.6% to end at Rs 225 after reporting over ten-fold jump in consolidated net profit at Rs 19.93 crore for the second quarter ended September 2013 (Q2) on back of higher other income due to foreign exchange gain. The Tata Group IT nifty buy sell signals  software products maker had profit of Rs 1.81 crore in a year ago quarter.

Colgate Palmolive (India) has dipped 4% to end at Rs 1,228 on BSE after reporting 24.5% year on year (yoy) decline in net profit at Rs 110 crore for the quarter ended September 2013 (Q2) due to higher advertising expenses. The personal products maker had profit of Rs 145 crore in a year ago quarter. Net sales grew 15.9% yoy at Rs 896 crore.

Ajanta Pharma has zoomed 14.7% to Rs 840 on reporting nearly three-fold jump in net profit at Rs 56 crore for the quarter ended September 2013 (Q2) on back of strong revenue growth. The pharmaceutical company had profit of Rs 21.88 crore in year ago quarter.

Everest Industries has tanked 14% to end at Rs 130 on reporting a net loss of Rs 6.65 crore for the quarter ended September 2013 (Q2) due to lower realization. The cement and cement products maker had net profit of Rs 12.51 crore in year ago quarter.

Alembic Pharmaceuticals has rallied 9% to end at Rs 197 on BSE after reporting a strong 45% year on year (yoy) jump in consolidated net profit at Rs 62 crore for the second quarter ended September 2013 (Q2) on back of strong performance from international generic formulation business. The pharmaceutical nifty live chart with buy sell signals company had profit of Rs 42 crore in the same quarter year ago.

In the broader nifty buy sell signals markets, the BSE Mid-cap and Small-cap indices ended 0.3-0.5% lower.

mcx charts Market breadth ended negative with 1,394 losers and 930 gainers on the BSE.

Drug maker Sun Pharmaceutical today said it has addressed the US health regulator's concerns about manufacturing lapses at its US-based Caraco Pharmaceutical Laboratories.

United States Food and Drug Administration had conducted inspections in January and May this year and had noticed the lapses.

When asked about the nature of lapses and the corrective measures the company has taken a Sun Pharmaceutical spokesperson said they were "minor observations".

"The company has responded to these a long time back," the spokesperson said without elaborating.

Earlier in the August 2012, Sun Pharmaceutical Industries had said American health regulator had approved resumption of manufacturing operations at Caraco for two drugs after inspections of facilities.

Subsequent to inspections and corrective action, the USFDA had determined Caraco to be in compliance with relevant paragraphs of the consent decree, Sun Pharma had said.

Markets ended lower on Monday as investors turned cautious ahead of RBI monetary policy review on Tuesday. FMCG majors ITC and Hindustan Unilever were among the top Sensex losers along with bank shares.

The 30-share Sensex ended down 104 points at 20,579 and the 50-share Nifty ended down 41points at 6,103.