Tata MF, Angel Broking stock/sector portfolio must-haves

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Nifty ends above 5100; auto, bank, pharma surge Mkts to test Jan highs in next few weeks: PN Vijay Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

It was a decent start to the week for markets. The indices were aided by gains in Asia and foreign institutional buying post the Budget. The markets, however, came off their highs. The Nifty ended the day at 5,124 while the Sensex shut shop at 17,102. The big stars in trade today were auto stocks. M&M gained 4% in trade. Ambuja Cement was the other big gainer. It was lacklustre day for the midcaps although the index came off its lows. The market breadth cooled off in the later half of trade to end at 2:1. The turnover was disappointing at around Rs 80,000 crore.

But despite today's positive upmove, markets pundits are not sanguine that the Nifty will take out 5,300.

The market might just be a little bit more jittery compared to the last three-four days where we had straight upward moves, says Rahul Mohinder of viratechindia.com. "We are heading into some kind of a break phase. Below 5,100, you once again could see a good 80-90 point drift down and then maybe we restart that journey." He is confident that the market would head to 5,200-5,300. "But for now, we seem to have paused and probably will take a good breather be it timewise or a good 80-90 point pricewise correction on the Nifty."

Lalit Thakkar, MD Institution, Angel Broking, is the most bulllish of the lot. He sees the Nifty around 5,700-5,800 going forward. "We expect to see 18-19% growth in corporate profit in FY12. Going forward, we will be discounting FY12 earnings. Though it is still time to discount FY12 earnings, we will always see the market moving in an upward trajectory, though the band will be narrow. We will be seeing market trading at 16-17 on FY12 earnings."

Fundamentally, Ved Prakash Chaturvedi, MD, Tata Mutual Fund, feels there are three key drivers which investors will have to look out for over the next few weeks. "First, it would be the earnings numbers which would come out and the guidance that companies give. The expectation is that the guidance would be generally be positive and hence some upgrades should happen. However, there is an overhang of what happens to interest rates in the next few months as well as a general apprehension that some newsflow from overseas might not be that good."

Sector bets:
Tata MF's Ved Prakash Chaturvedi is positive on IT, select pharma, consumption, construction, engineering, and capital good manufacturing companies. He is also bullish on private sector banks and sees it outperforming over a one-year period.

Thakkar is betting on Unitech, Anant Raj Industries, Bombay Dyeing, Raymond, State Bank of India.