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The 2013 All-India Research Team: Portfolio Strategy, First: Sanjeev Prasad
Sanjeev Prasad of Kotak Securities exhibits an in-depth understanding of the Indian markets, economy and stocks, according to one backer, which helps propel the researcher up two spots to his first No. 1 finish. He also garners a runner-up position in Oil & Gas. Prospects for the Indian market are rather grim, Prasad says, given expensive valuations for quality stocks, weak real gross domestic product growth that will lead to a poor earnings outlook for the next few quarters, a macroeconomic environment that will continue to pressure fiscal and balance-of-payments positions, and global uncertainty surrounding the tapering of the U.S. Federal Reserves quantitative easing program. However, he notes that large positions for export-oriented companies and those with revenue and margins in dollars such as information technology, metals and pharmaceuticals names will prevent a big correction. Accordingly, Prasad, 44, advises investors to stick with industries like IT and pharmaceuticals that benefit from a weaker rupee, as well as telecommunications and utilities stocks that are less affected by Indias domestic challenges. In addition, he is negative on the banking sector, citing nonperforming-loan problems, and consumer staples shares, based on their extremely expensive valuations against a backdrop of disappointing volume growth. Prasad, who joined Kotak in 1996, holds a postgraduate diploma in management from the Indian Institute of Management, Calcutta, and a bachelors degree from the Indian Institute of Technology, Delhi. He doesnt hesitate in calling a spade a spade, attests another fan. Carolyn Koo |