The bulls are still hesitant to take over Dalal Street since the recent selloff, which took away more than seven percent of the value of the Nifty50. During this period, some of the stocks held by star investors, including the big bull – Rakesh Jhunjhunwala – corrected as much as 10% during this period.
Some of these stocks have lost a quarter of their value in just three months.
Is now the right time to add some of these names to your portfolio?
The market has been within reach of bearish territory for most of the past few weeks. Even in the six-day sell-off to June 17 – which took nearly 1,200 points off the Nifty50 index, stocks such as Titan, Tata Motors, Trent, Quess and Radico Khaitan lost 3-10% of their value.
|A month||Three months||Six months|
Titan, Tata Motors and Star Health fell 11.5% over the six-day period.
At the end of March 2022, Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held a 5.05% stake in Titan and 11.29% in Star Health. The big bull held a 1.21% stake in Tata Motors.
Here’s what brokerages do with the three stocks:
|Titan||Motilal Oswal||To buy||2,900|
|Tata Motors||Motilal Oswal||To buy||485|
|Tata Motors||Prabhudas Lilladher||To buy||372|
|Tata Motors||HDFC Titles||Reduce||398|
|Star Health||ICICI Direct||To buy||825|
|Star Health||Motilal Oswal||To buy||840|
Damani owns retail chain operator Avenue Supermarts (DMart).
|Store||Radhakishan Damani Stake|
ICICI Direct has a ‘buy’ call on DMart, with a target price of Rs 4,530, implying a nearly 30% upside from Wednesday’s closing price.
|VST Industries||ICICI Direct||Hold||3,425|
|India Cements||Motilal Oswal||Neutral||155|
|DMart||ICICI Direct||To buy||4,530|
|Store||Ashish Dhawan Stake|
|Store||Mukul Agrawal Stake|
|Intellectual design arena||1.75%|
Replicating the portfolio of more successful investors or fund managers is known as portfolio cloning.
Should it be done?
Fund managers generally advise against using cloning as a strategy.
“Even though portfolio cloning can be positive in some cases, it’s a very dangerous strategy because you don’t know at what price the fund manager or investor bought the stock,” said Raj Vyas , portfolio manager at Teji Mandi, told CNBCTV18.com.
“The target investor/manager can be entered when the price was below fair value. You can buy when it is already above,” he explained.
One can look at aspects such as past performance, selection process, strategy (growth or value), nature of other bets (diversified or concentrated) and buying frequency when cloning, Vyas added.
First post: STI