Sharekhan Top Picks (Model Portfolio) Sept 2017

Sharekhan Top Picks (Model Portfolio) Sept 2017

Despite the backdrop of rising volatility, driven by geopolitical uncertainties globally, Sharekhan’s top picks portfolio continued its superior performance with positive return of 0.8% as against a decline in Sensex (down 2.4%) and Nifty (down 1.6%) last month. CNX Midcap 100 index also declined by 1.2% in the same period.
Though it was an all-round performance with only 2 out of the 12 stocks in the folio underperforming the Sensex, the strong outperformance was aided by sustained rally in L&T Finance Holdings and the run up in CESC, which was added last month to the folio.

This month, we are suggesting only one change in the folio. We are taking home profits in L&T Finance Holdings and replacing it with LIC Housing Finance. Post the recent correction in LIC Housing, the risk reward has turned favourable. It is a leading player in the fast-growing housing finance segment, which has structural growth drivers in place. On the other hand, L&T Finance Holding has delivered stellar returns of close to 56% in a short span of just three months since its inclusion in Sharekan’s Top Picks folio in June 2017. Hence, we believe investors should book profits and shift to LIC Housing – a quality housing finance company.