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FinXchange - Final RoundTeam Name: Wanna Be VCParticipants: Vishal Kumar (Ph. +91-7894511169)

Mohit Shelke (Ph. +91-9920770822)

Symbiosis Institute of Telecom Management (SITM),

Pune

Content

• Market Condition before 27th July

• Market Expectation / Sentiment in next week (27th July to 4th Aug)

• Industries not Preferred by us and rationale

• Industries Preferred by us and rationale

• Granular Stock Selection & Strategy

• Current Portfolio Status

• Future Outlook

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Market Condition – BSE Sensex

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Sentiment was positive from the market.

BSE Sensex was on the bullish side with the Sensex touching critical 32000 critical point since July 21st.

It was maximum with 32575 mark on 1st August 2017

Market Condition – Nifty 50

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Nifty 50 Trend was rising – Day on day.

For the first time, Nifty touched 10,000 mark on July 26th.

Market condition was favorable to get into the market with less chance of correction.

Why Bullish?

Our Analysis on Overall Market

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We were expecting the market to maintain bullish trend for 4-5 trading period.

We were expecting the correction to come, but not this early.

Unfortunately, on global cues –(US – North Korea heated conversation), market couldn’t support the critical level of 10,000 mark for longer trading periods.

Layoffs, restructuring, automation issue, International headwinds, high prices-low % gains

New telecom policy - ambiguity, incumbent players Opposing Consultation Paper by TRAI, TRAI consumer focus plan of action, Disrupting Competition, M&A

Very rarely give high return in short period, already high CMP due to GST, high valued, ITC (cigarette) GST issue and restructuring of business

Not in good shape due to demonetization. Although, GST and RERA will help industry in long run and is good from buyer point of view, profit booking in short run cannot be expected

IT

Telecom

FMCG

Real Estate

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Sectors Avoided

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Automotive

Consumer Durables

Pharmaceuticals

HealthcareBanking

Leather Products

Sectors Selected

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Granular Stock Selection

Voltas

• Q1 results were expected to be favorable for the company and its Net Profit grew by 18%, which resulted in the stock price appreciation.

• Our Rationale – Summer Season for AC (Peak time for Cooling equipment)

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Maruti Suzuki

• It was expected that Maruti Suzuki will have higher profit than the 4.4% for Q1-2017, which can be attributed to the sale of premium models

• Our rationale: Positive effect of GST (<1500 cc variants) + Volume growth because of BS IV sales

• Rate: 28% GST Cess: 1% for < 1200cc, 3% <1500 cc and 15% > 1500cc

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Granular Stock Selection

BATA

• BATA Q1 result was expected to be good because of sales volume growth.

• Rapid expansion plans announced by BATA (300 stores in next 5 years). Due to which, there was a positive sentiment for the stock.

• The share hit a 52-week high with 19.6% rise in net profit QoQ.`

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Granular Stock Selection

Stocks which didn’t went as planned

SBI

• We bought thinking about the rate cut of 25 basis point would be good and Industry will cheer with Repo Rate of 6%

• But, market expectations were for 50 bps rate cut, due to which the stock performed poorly.

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Shorting of M&M

• Stock: Mahindra & Mahindra

• Rationale: News of GST panel increasing the Cess of cars with 1500 CC and more from 15% to 25%, thus we expected the stock price to fall. Thus, we did shorting.

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Portfolio Status

• From 28th July to 4th Aug: Net Worth: Rs. 10,28,623 /-

• From 8th Aug to 10th Aug:Net Worth: Rs. 10,01,254 /-

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Future Outlook

• Bearish candle.

• Yesterday, it was Bearish day for the fourth consecutive day and Nifty50 is likely to test its crucial support placed at 50-DEMA in coming days.

• If it breaches, further downside may happen.

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THANK YOU