Questions poured in from every corner for market expert
Pranav Sanghavi during the hour long chat on the Budget day. Sanghavi handled each query with familiar ease and expertise.
Here is the transcript:
PRANAV SANGHAVI says, Hello good afternoon everyone. Welcome to the chat. Let's begin.
alok asked, Hi Pranav, How MAT will affect the big IT companies?? like Infosys , TCS etc.??
PRANAV SANGHAVI answers, at 2007-02-28 16:00:58I dont think it will have any effect any effect as these companies are already paying a tax higher than the MAT requires them to. It has been misread by the market and don't worry.
anu asked, is it s good time to enter market to buy
PRANAV SANGHAVI answers, If you are a long term investor, yes you could.
alok asked, will the market bottom out at dis level. shoudl one go for buying at dis level??
PRANAV SANGHAVI answers, Well the markets could fall a bit further before they stabilize. You can always buy in pyramid fashion.
Ujwal asked, Hi Pranav, At this stage and with this kind of Budget, what is the future of Sugar Sector i.e. Bajaj Hindustan, Balrampur Chini & Dhampur Sugar?
PRANAV SANGHAVI answers, I dont think the budget has any negative impact on the sugar sector in general but they are trying to contorl the commodity prices to keep inflation in check. So they will not permit the sugar companies to sell at very high levels.
Ziya asked, Hi, can you suggest good buy for 2 to 3 months period?
PRANAV SANGHAVI answers, Hi Ziya, any of the frontline stocks that I have been mentioning in my previous chat are a good bet. Any quality stock that you wanted to buy but were not able to because of high prices could be looked at now.
Ziya asked, Is it time for sell IT shares?
PRANAV SANGHAVI answers, I dont think so. May be the smaller IT companies get affected with MAT but definately not the frontline stocks. Hold on.
Alob asked, Harrisons Malayalam , how do you view this stock in light of the news that RPG group is restructuring this group.
PRANAV SANGHAVI answers, I dont follow that stock so will not be able to help you.
MCBC asked, is there any increase in the Short-term CGT rate ?
PRANAV SANGHAVI answers, No there is no change in the Capital Gains Tax.
manu asked, what r the prospects of Gujarat ambuja & icici bank
PRANAV SANGHAVI answers, I think in th eshort term the cement stocks may underperform the markets but in the longer term they will do well.
sansarg asked, Hi This has relation to today's budgetary provision on Dividend Distribution Tax. Does this apply to equity mutual funds? If yes, does it differentially impact Growth and Dividend options? You must reply to this one.
PRANAV SANGHAVI answers, Yes it does apply to them. It will affect the fund itself and not the investor.
akky asked, hi pranav
PRANAV SANGHAVI answers, Hi Akky, what is your question?
Avik asked, Hi Pranav, is it time for cautious approach in the stock market? Does it still look to be overall bullish? Should we take some downward protection at this monet?
PRANAV SANGHAVI answers, Hi Avik, I think the short term will still remain a bit choppy as I had mentioned two weeks back. But on a longer term I am pretty sure that the India Story is intact.
gyani asked, hi Pranav, can the policies in the budget stop market from falling any further...or indian markets also going to follow the globe..??
PRANAV SANGHAVI answers, Hi Gyani, I dont think the FM has said anything which is very detrimental to the markets barring the Dividend tax. But the global markets are also affecting our markets and all the emerging markets have dropped more yesterday than our markets have today.
Ziya asked, Is there any chance to recover sensex from this level for short term?
PRANAV SANGHAVI answers, I think eventually the markets will recover. Maybe the March end results declared could be the trigger in April or it could be something else 6 months down the line but I think the markets will recover.
bobbydeol asked, Hi, do u think HLL will move up to around 250 in the next 6 mths?
PRANAV SANGHAVI answers, I doubt that.
Ujwal asked, When Tatatele Services will start moving up?
PRANAV SANGHAVI answers, When there is some positive news about the company.
bobbydeol asked, Please suggest a couple of shares that have very good chances of giving good returns
PRANAV SANGHAVI answers, I think most of the frontline stocks have been hammered pretty bad. You could look at the frontline tech stocks, infrastructure stocks etc.
bhabani asked, hi pranav what will be the position of it shares in coming few month
PRANAV SANGHAVI answers, Hi Bhabhani, I think you don't need to worry about the frontline IT stocks. And MAT will have a marginal impact on the smaller ones too.
akkyboy asked, so what do u think of the budget?
PRANAV SANGHAVI answers, I think the government has given more focus on the educational and farming sectors. And he has left the Service Tax and Capital Gains tax untouched.
Sridhar asked, WHAT ABT HCL INFOSYSTEMS SHARES?? ANY CHANGE FOR INDIAN IT HARDWARE INDUSTRIES??
PRANAV SANGHAVI answers, It could be negatively impacted but marginally because of MAT.
Ram asked, Hi, outlook for rel com
PRANAV SANGHAVI answers, I think it will do well in the coming future.
atul asked, what is happening to sugar stocks
PRANAV SANGHAVI answers, I think they will move sideways for a while.
anilk asked, what is the budget fineprint which has resulted in steep fall in Construction companies like gammon, IVRCL etc.Has the market overdiscounted the budget provisons
PRANAV SANGHAVI answers, I think the construction companies will get valued more closer to their performance rather than value of their land banks which is more realistic and fair to the investors.
Gopal asked, "Rate of dividend distribution tax to be raised from 12.5 per cent to 15 per cent on dividends distributed by companies." Is this going to effect the Dividend distribute from the Mutual funds House?
PRANAV SANGHAVI answers, Yes it will.
DS asked, Hi, which sector will be benefited wrt budget provision.
PRANAV SANGHAVI answers, Hi DS with the current budget companies in the educational and farming sectors should do well.
maridi asked, WHat are the future prospects of Rice Millers in KRBL, Kohinoor Foods etc?
PRANAV SANGHAVI answers, Well Rice prices will be monitored. Government has already disallowed all Future contracts in Rice and Wheat.
harish asked, what shares to buy on the basis of budget?
PRANAV SANGHAVI answers, Rather than on the basis of the budget I would go on the basis of the valuations and PE ratios. Mainly the tech sectors, infrastructure sectors etc.
ramudupa asked, what next .will the market recover the fall.If so when ?
PRANAV SANGHAVI answers, Markets could take a while before they move into a bullish phase. There could be sideways movements and consolidation before it moves up.
Sanju asked, What is your view on the market? will it fall more?
PRANAV SANGHAVI answers, It could fall a bit further before it recovers. Maybe not immediately as it has corrected quite sharply over the last five trading sessions.
Felix asked, Good evening Mr. Pranav, Please tell me how long this (sensex down)position will be?
PRANAV SANGHAVI answers, Good evening Felix, I don't think it will remain for a long time maybe another month or two.
Felix asked, Do u think budjet will attect stock market.
PRANAV SANGHAVI answers, A lot of points have unknowingly
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