The 800 point weekly plunge in the Sensex on account of the hawkish move by the RBI and tapering by the US Federal Reserve has created an opportunity to shuffle the portfolio.
In a shrewd move, Sharekhan has replaced ITC with Jyothy Laboratories with the idea that ITC will be vulnerable on account of excise duty hike risks in the interim budget.
Jyothy Laboratories is a good stock pick because it is scripting a strong growth story on the back of a focused strategy of its revamped management team. Jyothi’s valuation is also supportive.
Sharekhan promises that investors can look for a 26% gain from its stock picks. The model portfolio has 11 top-quality stocks. There is also good rationale given for each stock.