BSE Sensex hit 20,000-point mark on Monday for the first time ever with a massive gain of more than 750 points on frantic buying by foreign and local investors in blue-chip stocks.
The major drivers of Monday's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI
Bank, HDFC Bank and SBI among others. Sensex had crossed 19,000 mark on October 16.
Did you make profits while the Sensex scaled dizzying heights? How do you plan to consolidate your gains? What should your investment strategy be now? Should you invest more in the market? Should you consider selling a few stocks? What would be the best stocks to buy, sell or hold at this juncture?
In an hour-long chat on
rediff.com on Monday, market expert Pranav Sanghavi answered many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat. We are within striking distance of the magical figure of 20,000. Let's begin.
rajiv asked, regardinf IPO of BARAK VALLEY CEMENTS LIMITED : BARVAL . is the bidding price of 42 will be benificial?
PRANAV SANGHAVI answers, at 2007-10-29 14:37:22I think cement as an industry will perform well over the next 3 to 4 years at least. In the short term there is a rumour of the cement prices being revised downwards so it may affect the listing of this stock mildly adversely.
anu asked, HEllo i have 1000 UCO BANK@51, shall i hold or sell ?
PRANAV SANGHAVI answers, I would hold.
nilesh asked, r u there sir
PRANAV SANGHAVI answers, Hello Nilesh good afternoon and what is your wuery today.
sand asked, hye. is bombay dyeing worth buying at current levels. thx
PRANAV SANGHAVI answers, They have large expansion plans for real estate development in thelucrative south mumbai area. They are also looking for a strategic partner for their airline where Bom Dye has a substantial holding. So if it gets a decent valuation then the parent will benefit. I would hold on and buy on dips.
asd asked, how to buy ADR/GDRs?
PRANAV SANGHAVI answers, They should see some added activity since they are more easily accessible now for the unregulated FII investors. They will not be allowed to make fresh investments into India.
Manoj asked, Is IFCI worth buying at this level. What is its future
PRANAV SANGHAVI answers, IFCI looked attractive when it corrected to Rs.70 levels. I would now wait for the price that the strategic investor announces which they are ready to pay for the company and then take a call.
RAKESH asked, I WANT TO INVEST IN MARKET NOW IS IT THE RIGHT TIME FOR ME I AM A SMALL INVESTER
PRANAV SANGHAVI answers, The markets are at all time highs so getting in for a first time investor is risky. I would have invested when the markets correct a week ten days back when SEBI announced its plans to restrict unregulated FII investments into India.
Shashikant asked, sir wats a reason behind that markets moving up nd sensex is going to touch 20k
PRANAV SANGHAVI answers, Essentially I think it is excess liquidity. The SEBI has tried to put some brakes on it without much luck in theshort term but RBI may this week in its credit policy announce further liquidity reducing measures.
george asked, what is the expected price trgt for RPL and RNRL...are they good for long term
PRANAV SANGHAVI answers, I thinik RPL is surely a better bet for the long term as RNRL's business plans area still bit grey.
anandanand asked, hello pranav i have invested 50 k in hdfc midcap eqity fund at 10 per unit mid caps are booming but NAV is not increasing can u through light
PRANAV SANGHAVI answers, You will have to see what mix of mid-capstoicks does the fund hold in its portfolio. You could write to the MF and ask for details they are bound to provide the same to you. Maybe the stocks they are holding are notappreciating as fast as other mid-cap stock which you are following.
rakeshks asked, I've 200 Hotel Leela@45, shall I hold or sell?
PRANAV SANGHAVI answers, Surely hold.
Sahdev asked, Hi Pranav, Is Torrent Power good holding from long term view?
PRANAV SANGHAVI answers, Yes you could look at it as Power sector will see a lot of growth over the next3 to 5 years as India is grossly undper powered country.
maheshp asked, hi, i bought punj lyyod today.should i sell it now.
PRANAV SANGHAVI answers, If you are a short term trader and are making profits you could book some. As if there is any negative news in teh Credit Policy the market may correct very marginally.
rajan asked, Hi! pranave I hold BHEL,LAKSHMI MACHIN WHAT WOULD BE U SUGGEST FOR THAT STOCK!
PRANAV SANGHAVI answers, Hold on to both. I think BHEL is announcing their results today which I think will be fantasticmuchlike L&T.
aravind asked, hi,is it good time to invest in stocks r juz hold on to what i ve. i am a small investor.is it advisable to invest in IT stocks now?coz now a days i dont feel IT stocks r doing good,if i can invest in wat i can invest... thankx
PRANAV SANGHAVI answers, I would hold on to what you have and wiat for a correction for what ever reason it may come.
avita asked, Hi Pranav, Should i hold Hexaware or book profits given the current situation its just getting into negatives?
PRANAV SANGHAVI answers, Yes you could take some profits off the table and look at reentry at lower levels.
Jogesh asked, I have 30 Tata Power @1130/-. Should I sell
PRANAV SANGHAVI answers, Hold. If you are a very short term investor you could book some profits other wise anythignn beyond 6 months then hold on surely.
shankar asked, what equity do u recommend to buy at this level
PRANAV SANGHAVI answers, Equity that you will hold for atleast 2 years, as the markets may ride upslightly but they may correct too on any negative news as we saw a week and a half back whern SEBI announced its news related to FII's which sent the market in a lower circuit.
V asked, WHICH STOCK IS GOOD FOR FUTURE
PRANAV SANGHAVI answers, Adding to Shankar's questions even quity which I would holdfor 2 years would be the large cap, frontline growth stocks like L&T, BHEL, Bharti, RIL, DLF etc.
anand asked, hi pranav, good afternoon. What is the position in respect of SRF which I am holding 500 shares bought at 169.50. It has not reached this figure since two months almost. Can u pls. suggest me what to do
PRANAV SANGHAVI answers, The markets are at all timehighs but it has still not touched your acquisition price. I guess you will have to hold on for a little longer to see your price.
Anita asked, should I sell Arvind mills shares at this rate.
PRANAV SANGHAVI answers, There is some story buzzing in the stock so I owuld hold on to it.
sidharth asked, Hi please advice is this the good time to book pofits before market can come down
PRANAV SANGHAVI answers, You could book partial profits as the markets are roaringahead and valuations left far behind. But the markets could correct.
jitu asked, I have 123 idea cellular. I am a long term investor. This quater result is not so good. Should I sell it or hold.
PRANAV SANGHAVI answers, Yes their this quarter result was below expectations but i would still hold on to the stock.
vikki asked, what is the maximum limit for dlf and power grid within a month?
PRANAV SANGHAVI answers, Both stocks I am still bullish on. DLF seems to have got rerated after their announcement of the large development project with the Karnataka Government. Power Grid also looks like a decent buy at these levelsfor a longer term perspective.
Jogesh asked, I have 50 Hindalco@120/-. Should I sell
PRANAV SANGHAVI answers, I would hold on. Although it is ametal stock, I think it will deliver value over a longer term.
M asked, WHAT
"inline-block" id="div_arti_inline_advt">