Broad markets tanked more than 6% in the month of March. The correction in the markets that were expected in December 2014 stretched and started off in March 2015. Corporate results for Q3-2015 were not as per expectations. Don’t know if the expectations were very high or companies did not have the opportunity to perform. Following such results, Q4-2015 is also expected to be an under-performer.
Banking stocks took a big hit as NPA’s began weighing on their stock prices. Apart from those stocks that have strong fundamental support, others have started their downward journey. Now, we reach a level where, “Buy anything and it will raise” thought requires a re-think. From here, stock selection will need importance, to have good performance.
We have closed the month of March 2015 with near 3% profits as against 6% loss on the SENSEX. This performance was possible due to our portfolio concentration in Electrical appliances and Pharma Sector which were star performers for March 2015.
Regular churning of the portfolio has helped us be in the right sector at the right time, which has helped us get the best outcome on performance.
Volatility Index shows near 60% drop in its numbers, markets likely to give 40% lesser returns that what it gave in 2014-15.
Gold is not an investment always and it has showed the same with a continuous decline for the second year. Gold has to be purchased only for consumption. Having it as an investment will not meet inflation.
Mutual Fund exposure getting more than double is a sign that retail participation has come into the markets. This will keep the momentum high for the next year.
3 out of the BSE Top 100 and Top 500 stocks listed in the image above are in our portfolio and they have contributed to considerable profits in 2014-15 for us.
Auto – Ancillary was the prominent sector in our allocations. We don’t have any exposure in the top losing sectors.
Good news is that we don’t have any of the Top losers in our portfolio. All of these contributed in our robust performance.
We look forward to continue with similar outperforming returns in our portfolio in 2015-16.