Yes Securities has rejigged its portfolio for June after the equities consolidated in May. Indian shares corrected relatively lesser in May (down around 3-4 percent) as compared to April and March amid trade optimism over the re-opening of economies in lockdown to contain the virus.
With indices back in the green in June, Yes Securities included 2 new stock in its portfolio, while excluding the same number of stocks. The domestic brokerage included AMC stocks Nippon Asset Management and ICICI Prudential in its portfolio, a recent report said. Meanwhile, UltraTech Cement and HDFC Life were excluded.
The brokerage assigned 4.5 percent weightage to Nippon Asset Management in its portfolio due to resilience in the AMC business despite volatility in the equity market. Low penetration ensures a multi-year story, comfortably growing at low-to-mid teens with a strong profitability profile, Yes Securities explained.
It said that in April, open-ended equity funds witnessed net inflow growth of 35 percent YoY and SIP AUM grew by 15 percent, MoM. After a sharp fall in April due to the Franklin Templeton crisis, debt funds also seem to have stabilised in May, with net inflows doubling MoM and up 34 percent YoY, the brokerage noted.
For ICICI Prudential, the brokerage assigned a 3.4 percent weight in its portfolio since the company is trading at a steep discount and has attractive valuations.
Meanwhile, the brokerage excluded UltraTech Cement as it prefers playing this space through Birla Corp in the present scenario. As for HDFC Life, the brokerage prefers to play the insurance theme via ICICI Prudential on the back of valuation support.
Yes Securities model portfolio includes stocks like RIL, HDFC Bank, Jubilant FoodWorks, Kotak Bank, Alembic Pharma, Bharti Airtel, HDFC AMC, HCL Tech, Page Industries, MGL, and Birla Corp among others.
