The India Infoline Model Portfolio (IMP) has delivered an impressive performance since its inception in October 2008 with a return of 92.4%. Since last revision on 09th July ’09, the portfolio has performed more or less in-line with Sensex despite a sharp correction in two portfolio stocks, Suzlon Energy and Reliance Communication. As an exercise of shuffling the portfolio at regular intervals, we are making some changes to strengthen IMP for long-term outperformance. This time, we are retaining 7 stocks from the erstwhile portfolio of 15 and adding 6 stocks to make a new portfolio of 13 companies. Further, we have tweaked weights of the companies retained. We are now underweight on real estate as interest rates are headed north with initiation of monetary tightening by RBI and also expect commercial rentals to remain subdued for some time due to oversupply. We remain bullish on the banking sector with credit demand expected to pick-up in H2 FY10 driven by revival in corporate investments and retail credit. All of the above-mentioned portfolio adjustments have been done with a positive long-term view on the market. However, in the near-term the market may remain choppy with uncertainty over timing of stimulus withdrawal by the government. Steep corrections, though, should be used to increase investments in the market.
IMP has delivered 19.2% return since last revision in July 2009
Our model portfolio, IMP, has delivered a return of 19.2%, since last revision on July 09th 2009. The performance was more or less in-line with Sensex, which returned 21%. The gain in IMP since latest revision was driven by Canara Bank (up 63.9%), Bajaj Auto (up 48.6%), Simplex Infra (up 46.9%) and ICICI Bank (up 37.4%). Key portfolio draggers were Reliance Communication (down 31.7%), Suzlon (down 20.5%) and ACC (down 7.0%).