>Top Picks (SHAREKHAN)

Driven by unanticipated strong global cues the markets rallied hard during the past month. Benchmark indices Sensex and Nifty surged by 24.3% and 22.6% respectively in March 2009. Given the conservative composition of our Top Picks basket, the portfolio provided relatively lower returns of 11.8% in the same period.

We had removed Crompton Greaves from our portfolio during the month on account of an unexpected corporate development in the form of an unrelated investment in a group company. We are re-introducing the stock in our list because of the clarity provided by the management for its move and the expectations of healthy Q4FY2009 results.

Another change includes the replacement of UltraTech Cement with Grasim Industries due to a gap in their relative valuations (much steeper appreciation in the price of UltraTech Cement). We are also introducing India Cements in anticipation of a healthy Q4 performance and increased weightage on the cement sector. On the other hand, Bharat Electronics has been removed from the list as it has appreciated by over 21% in the last two months and the expected trigger in terms of its Q4 results has already played out.

• Bharat Heavy Electricals
• Bharti Airtel
• Crompton Greaves
• Grasim Industries
• ICI India
• India Cement
• ITC
• Lupin
• Marico
• Reliance Industries

To see full report: TOP PICKS