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Top Picks for 2011

R Shree Ram

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Private consumption is set to improve over the long term. It clocked a

robust growth of 9.28 per cent in the second quarter of 2010-11 RELAT ED
MOST POPULAR
compared with 7.84 per cent in the first quarter. The phenomenal Buoyant market, bullish returns
growth in sales of cars and consumer durables is a testimony to Stories Photos
A roller-coaster year ahead
India's growing domestic demand. RIL may pip ONGC as India's most profitable
company
The auto, pharma and metal sectors are seeing a growth in their top lines, while the KG bas in: ONGC to outsource production
banking sector is witnessing a high bottom line growth. The government has plans for Maruti hikes prices by up to Rs 9,000
the infrastructure and banking sectors and, hence, you should focus on these. The Vis a-like India card Rupay proposed
expansion in the power and the oil & gas sectors could also lead to topline growth. Hero Honda promoters pledge shares
The telecom sector may not see higher earnings.
Oil prices fall to lowest level in weeks

Always think of long-term gains and don't expect to double a stock's value in a month. Wait for dips and
invest in a staggered manner. Focus on the infrastructure, banking and auto stocks. MUST SEE

GAIL Exide Sintex

Rs 501.90 Rs 160.05 Rs 181.65
The company is expanding The continuous flow of demand Sintex's pre-fabricated building
its pipeline network and steady growth in the and construction material is in
substantially-by another automobile sector has propelled high demand for low-cost
6,600 km-within the next its volumes, making it a good housing, rural schools and
three years. pick for 2011. healthcare shelters. Dining in AC eateries to Volatile market tests
get costly investors

In 2011, corporate performance will be driven by topline growth

Satish Menon
Director (Operations), Geojit BNP Paribas Financial Services

One should invest with a three- to five-year horizon. Emphasis should be on finding

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4/30/2011 Top Picks for 2011 - Business Today - B…
businesses which offer long-term benefits and have management teams that can deliver, even if the
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catalysts for outperformance are not readily apparent. Investors can benefit more from a stock's
lifetime potential, rather than from short-term corrections. Business Today
Like
Macro overlay suggests that corporate performance will be driven by a healthy topline growth of 18-20
3,469 people like Business Today.
per cent in 2011. Inflationary pressure could increase input costs, which are likely to be offset by
improvement in capacity utilisation and higher efficiency. The only spoiler could be the rising crude oil
prices. So, invest for the long-term.
Hemu Om N eeraj Humna C oolankur

BASF India CropScience Eid Parry Ingersoll Rand

Rs 605.05 Rs 863.10 Rs 498.55 Rs 446.15
It's the prime vehicle It's 71 per cent The company is set A leader in air Jai S w at N itin Rakesh M S addam
for driving growth in subsidiary of Bayer Ag, to reap the benefit of compressors, it aims to
F acebook social plugin
India after having Germany, and market better capacity grow three times in four
integrated its parent leader in growing utilisation built over years and is cash-rich
BASF Ag's operations. domestic crop the past 4-5 years. with the capacity to grow BT SPECIALS UTILITIES
protection. EMI Calculator
The Sensex is expected to trade between 18,000 and 25,000 Millionaire
Manish Shah HRA Exemption
Associate Director (Equities and Derivatives), Motilal Oswal Securities Tax v/s Free Tax
Savings Worth
India's GDP growth in 2009-10 was better than that of most countries. This was SIP Calculator
mainly because India's economy was driven by domestic consumption and was not Retirement Calculator
led by export. The Sensex followed the fundamentals and it reached a high of 21,108 in November FD Calculator
2010, only to correct itself. Inflation Impact
Mortgage Calculator
Growth in the first half of the financial year has been impressive at 8.9% and we could end with an Business Tips
annual GDP growth of around 9%. With a good monsoon, agriculture, which is a drag on the GDP,
could register a growth in excess of 4%. The manufacturing and service sectors could register a
growth of around 10%.

These results have been achieved by using unutilised capacities. Further growth would come from
capex and the investment cycle in 2011. This, combined with an increase in sales from existing
capacities, should see earnings go up by about 18% this year.

With the Sensex drifting to a level around its 200-day simple moving average of 18,400, one could
expect the benchmark index to trade between 18,000 and 25,000 in 2011. The strategy would be to buy
fundamentally good stocks during dips.

Bhel M&M Infosys GAIL

Rs 2,318 Rs 732.25 Rs 3,293.30 Rs 501.90
Expect Bhel to retain over Several growth drivers Infosys is one of the GAIL is on its way to
55% of the market share for the company over most profitable becoming a true
in the 12th 5-year Plan the next 3-4 years, among the frontline utilities company. It will
despite new coupled with cheap Indian IT companies be one of the key
[X]
manufacturing capacity of valuations, make M&M and offers services beneficiaries of several
16 GW being added by one of our top bets in that have domain gas finds in India in
other companies. the auto sector. depth. recent years.

It will be about investing in the right companies

Pallav Sinha
President and CEO, Fullerton Securities & Wealth Advisors

The investment strategy in 2010 was driven mainly by a top-down approach, where
the right sector selection held the key. In 2011, it will be about selecting and investing
in the right companies. We recommend a thematic approach built around the Indian growth story,
comprising multiple themes, such as consumption, asset creation, financial inclusion and technology
innovation.

Despite a rich valuation, specific large-cap stocks in high-growth sectors still hold the potential to
deliver steady returns for the next 2-3 years. Mid-cap and small-cap stocks have had a good run, thus
moderating the valuation differential with large caps. The recent emergence of corporate governance
issue and tight funding related to mid-cap and small-cap companies strengthen the case for investing
in large-cap frontline stocks.

The sectors that fit into the consumption theme are agriculture, FMCG, pharma, retail and automobiles.
Some of our recommendations in the consumption theme are ITC, Cipla, Pantaloon Retail and Maruti
Suzuki, which are leaders in their respective sectors. Banking and financial services sector is a good
surrogate for capturing growth in the underlying economy.

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4/30/2011 Top Picks for 2011 - Business Today - B…

SBI NTPC Hindalco

Rs 2,696.05
The bank will maintain its
leadership in the public-sector
banking space, given the strong
uptrend in NIIs. A strong
diversified loan book portfolio
will help sustain its market
share.
Rs 197.50
Greater efficiency, a regulated
business model, strong capacity
addition over the next three
years present a strong outlook
for NTPC. It is available at 12x
one-year forward earnings.
Rs 224.25
A strong demand for
aluminium in the domestic
market, firm LME prices and
a defensive business, in the
form of Novelis, will benefit
Hindalco in the long term.

All stock prices are BSE closing as on 16 December 2010.

WHAT 2011 HAS IN STORE FOR YOU

1. How 2011 will impact you
2. Buoyant market, bullish returns

3. A roller-coaster year ahead

4. Top stock picks for 2011

5. Tracking a positive theme

6. Retail investors should go global

7. Keep pace with changing times

8. Debt funds on solid ground

9. Make the best of uncertainty

10. All set for new, improved cover

11. 'New norms don't include incentives'

12. Invest in a house, cautiously

13. 'Teaser rates don't benefit anyone'

14. Supply crunch to push commodity prices

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Posted by: Ratish Mohan (), mumbai | 14-January-2011 Post Your Comm ent

In absence of commodity specific ETFs, investment opportunities are limited.

Posted by: Paritosh Verma (), New Delhi | 14-January-2011 Post Your Comm ent

As morning shows the day, high inflation will define this year. So commodities look a good bet for this
year.

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