Indian markets achieved yet another milestone on September 19. It opened positive and within seconds, hit a new high. The Sensex is currently trading 16,092, up 423 points from the previous close. The 30-share index took 53 days to reach 16,000 from 15,000.
Did you make gains while the Sensex soared? How do you plan to consolidate your gains? What should your investment strategy be now?Should you invest more in the market? Or should you consider selling stocks? What would be the best stocks to buy, sell or hold at this juncture?
In an hour-long chat on rediff.com, market expert Pranav Sanghavi replied to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat on this historic day!
mkumar asked, Sir, What is your suggestion about Reliance Communication i.e. whether one should hold the stock, buy it at the current market price or sell it ?
PRANAV SANGHAVI answers, at 2007-09-19 12:03:53It's definately a hold for me. In the Telecom and specially cellular telephony segment, India is amongst the fastest growing markets. RCom is in the top two players and I think their growth rates should continue at over 40%. I wouldn't buy it today as the markets are nearly 500 points up. But definately a buy on dips or corrections.
Alok asked, Sir what is the outlook on Crew BOS. I have 100 purchased at 200.
PRANAV SANGHAVI answers, I am sorry I don't follow that stock.
rahul asked, Sir, i have Reliance communication @ 555 and Idea cellular at 111 which i brought almost 3 months back. Both the stocks are not doing great is telecom sector stocks a good bet for long run pls advice
PRANAV SANGHAVI answers, I think Idea has moved up form its issue price substantially and Rcom too has appreciated substantially. I thnk the telecom is definately a growth sector.
Neeraj asked, i have many stocks in my portfolio and today most of them are on all time high. Should i wait for some more time or sell them now? Do you think this rally will continue for some more time?
PRANAV SANGHAVI answers, The euphoria may continue for a few more days. So you could book some profits at higher levels. But I see good results form the top corporates for the September quarter so markets may rally again in october.
asha asked, Sir I have 100 shares of Pricol @50, 500 shares of Grcable @13 and 500 shares of maars @7, can you please advise me as I am in great loss?
PRANAV SANGHAVI answers, The only advice I would give you is stay with the frontline stocks and quality midcap stocks. Get out of small cap stocks. It is better to book losses in them. When the market is at an all time high and you are still in losses doesn't speak much about the stocks.
sanjay asked, videocon in
PRANAV SANGHAVI answers, I think Videocon should post an EPS of over Rs. 40. Therefore it is still trading at a very low PE multiple. It could be looked at with a longer term view.
mats asked, What script will u suggest to buy at this point of time?
PRANAV SANGHAVI answers, Only stocks which you will not look at again for another 2 to 3 years. The frontline stocks. As the markets are at all time highs you may see lower levels in the short term.
Prasanna asked, Hi Pranav, Please let me know long term prospects of PRAJ IND and RNRL
PRANAV SANGHAVI answers, Hi Prasanna. I have been bullish on Praj from a very long time and have said so in my chats from last year onwards. I am still bullish on them especially with news about the ethanol manufacture for sugar companies form the government today. I think PRaj will only benefit. RNRL should move up steadily but I would prefer to get in at lower levels.
kamlesh_soni81 asked, what about nifty 2month
PRANAV SANGHAVI answers, I think after a short consolidational type of a correction the index should move up once the quarterly results are out in October.
rahulS asked, I have invested in mostly equity. 34% in ELSS and remaining in secondary market. in stocks(sec. market), my portfolio has 4.4% Power Generation(RNRL), 7.8% Petrochemical (Rel Petro), 30.4% telecom (rel. comm), 5.1% air transport(jet, deccan), 14% Bank PSU(SBI) and 38% Construction (GMR Infra, Omaxe, DLF; in the reducing percentage share in this category). Please comment. Is this right portfolio for medium to long term...?? I am also planning to buy slowly(on declines) some more share in aviation, hotels as I see aviation and hotels bright in long term. and some reliance companies stocks... what do you say ??
PRANAV SANGHAVI answers, From the face of it you investments look broadly spread out. I think you should do well in the time to come. If you are a long term investor.
satish asked, I want to buy 100 shares of sintex,pl give the opinion
PRANAV SANGHAVI answers, You could look at it but on dips not today when the market is up nearly 500 points.
bhuvaneswari asked, As a fresher to stock market how to identify a stock and what are the main things to be borne in mind ??
PRANAV SANGHAVI answers, There are a lot of factors both micro and macro, one must study while looking at a stock. you must look at the industry it is in and how it will fare oer the time to come, its past performance, the balance sheet, it's profitability and shareholder value creation over the years.
ss asked, is tata motors a good bet for long term pls advice
PRANAV SANGHAVI answers, I think so. In the future the government might reduce interest rates and that should benefit the stock. Also right not input costs area lso higher in terms of steel prices etc. But longer term I think the stock will do well.
Venkat asked, Is this a right time to invest in IFCI ltd
PRANAV SANGHAVI answers, You would be getting in to the stock near to its all time highs. I would be carefull because we don't know what would be the upside in the short term. But if you are a longer term investor then you could as some of the names who are bidding for the strategic stake in the company might bring a lot of value to the company in the time to come.
Nailesh asked, hi, do u see any correction or a small dip happening in 1-2 months
PRANAV SANGHAVI answers, Hi Nailesh, yes a correction could not be ruled out.
asd asked, can dlf cross 750 in 1 month?
PRANAV SANGHAVI answers, I would doubt that. A month or so back when it was around the Rs. 480 mark I had recommended a buy. It has already moved 15% since then. I would say it could cross Rs. 750 by April next year.
manish asked, yr view on Astra Microwave I have @233/-Can I purchase at CM 149/-to average.
PRANAV SANGHAVI answers, I am sorry I don't follow that stock so I won't be able to help you.
Govind asked, What if Gujarat Ambuja Cement is de-listed after Holcim's buyout? Can I continue to hold it?
PRANAV SANGHAVI answers, You can continue to hold it but you won't be able to trade or sell the crip on the exchange. You will have to approach the company for that.
MukeshB asked, Hi Pranav, When (around which dates)do companies announce half-yearly/Q2 results? I am hoping to book some profit on Balaji Tele and Info Edge. Your take on these 2 stocks.
PRANAV SANGHAVI answers, The 2nd quarterly/ half yearly results should start from around the 8th or 10th of October.
rahulS asked, Hi Pranav, Do you see market crossing 17500 by Diwali ? Do you syggest investing in fundamental large cap companies or tech companies also... which are more dependent on the business from US and all.
PRANAV SANGHAVI answers, Wouldn't we love that but to me it looks difficult. I think large cap companie smake more sense. The tech companies still have some negative factors against them.
hiteysh asked, Is this time to entered into IT Stocks for medium and long term
PRANAV SANGHAVI answers, You could enter them with a long term view.
meghrajs asked, Dear sir Unitech move upside yes/no ?
PRANAV SANGHAVI answers, I think Unitech will also post great results this quarter so will DLF. I think you could hold on.
rajan asked, Hi! Pranav What u think in nex 3 months should we book profit or hold i have Ankur Durg@120(50), Bhel @1250(4) Jai corp@7000(1) lakshmi machin@3750(10),rnrl@31(100)
PRANAV SANGHAVI answers, If you have achieved your profit target then you could book some profits.
MukeshB asked, Pranavji, PLZ DO REPLY. I asked many people none answered. About when companies announce their H1/Q2 results. I want to sell InfoEdge and Balaji Tele then.
PRANAV SANGHAVI answers, I think I already did.
vish asked, What do u think are the next triggers for the market - positive as well as negative.
PRANAV SANGHAVI answers, Next triggers would be the US economic data. The Fed having cut 50 basis points means that they see trouble in their economy. Other factors going for India is the strong inflow of foreign money post this cut, good corporate results, GDP growth etc.
abdul asked, hi pranav i would like your opinion on TTML
PRANAV SANGHAVI answers, I would rather look at a frontline telecom stock than TTML.
rakesh32 asked, Do u see market sgoing up from here
PRANAV SANGHAVI answers, It may for a few trading sessions, but there could be some consolidation before the September quarter results.
raj asked, What your views on DLF, TVS Motors, IDEA, Mro-Tek and Rico Auto
PRANAV SANGHAVI answers, I am bullish on DLF, IDea and Rico. But TVS is up against very strong competition in the face of Bajaj Auto and Hero Honda, so I would stick with the front runners in the two wheelers.
sim asked, Hi pranavji Can u give me monday target of IFCI. I have purchased IFCI @ 72 of 1000 and Tatele @32 of 1000, Ispat Industry @20.37 of 800 and Nagafert @37 of 800, Chambal Fert.@50.20 of 500 & @ 60 of Prismcement (250 shares). Can u tell me which shares to be hold and from which shares to be out (i'm shortterm investor)
PRANAV SANGHAVI answers, Most of the stocks you have mentioned are the momentum stocks which have run up substantially either on some news or story. I would hold on to Nagar Const., IFCI, Prism Cem of the lot.
sam asked, hi pranav I'm a new investor and want ur guidence on where to invest during this time when the sensex has crossed 16,000 pts.
PRANAV SANGHAVI answers, I would wait and watch the rally rather than entering at these all time high levels. I would wait for dips and corrections to get into quality frontline stocks.
rakesh32 asked, Give your say on ORBIT CORP, OPTO CIRCUIT
PRANAV SANGHAVI answers, Orbit is a niche player in the real estate sector. They essentially develop in the high value Bombay sector and the stock looks good to me. Opto Circuit I don't follow sorry.
thomas asked, id ifci good for long term...i am planning to switch from ambuja cements to ifci do you think think this will be right move
PRANAV SANGHAVI answers, I would not get out of the cement sector for the next two years atleast. You could look at IFCI but at lower levels.
ani asked, Hi Pranav, I am having 100 TCS @ 1256. Please let me know what strategy should I take for this.I can hold on for 1 year if I can get my price.
PRANAV SANGHAVI answers, I think if you hold on for a year you shoudl see your price.
stockbeast asked, Do you foresee any huge correction ahead? Quarterly results are expected to be good ahead. Where do you see BSE by the end of the year ?
PRANAV SANGHAVI answers, There could be a correction. But yes I agree the quarterly results look to be good. It woud be anyones guess where the index would be at the year end.
vikas asked, i would like your opinion on auto sector
PRANAV SANGHAVI answers, I think our government will reduce our interest rates before this calender year end. I think that will give a boost to the auto sector. The results will be seen by April next year.
hereicome asked, Hi Pranav, Is McDowell Holdings a good buy? Upto what price?
PRANAV SANGHAVI answers, I do like Mcdowell Holdings as it has some quality investments in group companies and they are fast appreciating.
rvcat asked, Hi Pranav-This is 3rd time iam writing to you and hope i get areply this time.I have transferred all my shares to my wifes demat account as i accepted a job abroad.I want to know does this attract tax?and if my wife sells these shares within one year of transfer from my account will it attract Short Term Gains.
PRANAV SANGHAVI answers, If you gift it to her then it will not attract tax. Please ocnsult you CA for the same. Yes it will attract short term capital gains if she sells them within one year.
stockbeast asked, It seems infosys is struggling a lot. Is it a good time to buy infosys now? How about their chances of breaking in the 2000 barrier? Roughly when are you expecting it to happen?
PRANAV SANGHAVI answers, If you can hold for over a year then you could look at Infosys.
Don asked, Hi Pranav, Market has gained considerably today. Do u think this upward movement will sustain for sometime now?
PRANAV SANGHAVI answers, In the very short term it could but eventually the valuations and rationalisation will catch up.
et asked, Sensex is moving from 7000 to 16K in 7 years but it took 5 years to move from 6000 to 7000. How is the future from here 16 K to 30K and in how long?
PRANAV SANGHAVI answers, I think you have your facts incorrect.
Don asked, I have been looking at the progress of these scripts for a while: Bharat Bijlee, BHEL, BEML, Larsen, AIA Engineering, Suzlon Energy, Anant Raj Ind, Sobha Developer. They have rose to a good level now. Can i enter these shares at this level considering 6-12 months horizon? Which other scrips do u suggest to enter now?
PRANAV SANGHAVI answers, If you are looking at 12 months and over then you could. Otherwise I woudl wiat for a correction or dips.
britto asked, Hi pranav atleast this time answer my question. I have about 200shares of hdfc bank bought at Rs.78. Should i hold all the shares and sell half of it and also indiainfoline @ Rs.135 holding about 400 shares tell me what to do with this shares
PRANAV SANGHAVI answers, Hi Britto, you can surely hold on to HDFC Bank. I wouldn't sell them. Indiainfo you could switch to a frontline financial stock like the forthcoming issue of Edelwiess, or Motilal Oswal etc.
riyan01 asked, hi can i take icic share
PRANAV SANGHAVI answers, You can surely look at it with a long term outlook. It is the leading private bank in India.
kasim asked, what is ur openion on DLF, hold or sell it?
PRANAV SANGHAVI answers, Definately a hold.
Win asked, hi wats ur thoughts on banking stocks like Vijaya Bank, UCO Bank, Centurion Bank of Punjab and indus sindhbank..Wat percentage of return we can expect in nect 6 months
PRANAV SANGHAVI answers, All these are the mid cap stocks and they will benefit from any rate cut that RBi may bring in over the next few months. Also, their performance has been good depite the higher interest rates. I think one cannot rule our a 15 to 20% return over the next 6 months.
sunny_suresh007 asked, how can start my bussines in this field
PRANAV SANGHAVI answers, First take up some basic courses then meet a broker.
sunny_suresh007 asked, how can start my bussines in this field
PRANAV SANGHAVI answers, First take up some basic courses then meet a broker.
Don asked, Which shares do u think to enter now, considering timeframe till March 08?
PRANAV SANGHAVI answers, I would look at stocks like SBI, DLF, L&T etc for the time frame that you mention.
Shilpa asked, I have Prime focus 150 @945 , what is the outlook of the company , how long should I hold
PRANAV SANGHAVI answers, They are in production and post production business in the media sector. I would book profits and move to a grwoth sector.
Syed asked, I had purchased 50 NTPC shares in 2005 at 100 rupees. How long should I keep it? What's the target for NTPC? Are they planning to give bonus?
PRANAV SANGHAVI answers, I have not heard of any bonus news but you can surely continue to hold on. Our country is highly underpowered and NTPC has large expansion plans to set up more plants.
rvcat asked, Pranav this is my second question for the day.Hope i find your time. Please give 3 stock recommendations for 10 year prespective.I can invest around 2 lacs.
PRANAV SANGHAVI answers, You could look at stocks like DLF, SBI and L&T.
prasad asked, I have natco pharma limited company shares on 117 rate in 200 shares. company status?
PRANAV SANGHAVI answers, They had issued FCCB's to foreign investors and were looking to invest into expasion of their existing capacities. But I have not recently studied the stock.
g asked, any advice for a guy who wants to start in the stock market
PRANAV SANGHAVI answers, Undertake courses offered by the training institutes of BSE and NSE. Consult a broker thereafter.
Premkumar asked, Sir, I have 1000 shares of Ispat Industries bought at Rs.19 per share. What is your guidance on this ?
PRANAV SANGHAVI answers, It may go up in the near term but it is a company ridden with huge losses from the past also it has been referred to the BIFR in the past. Unless the promoter who happens to be Laxmi Mittal's brother injects further funds in to the company I doubt the company will have any meaningful gains in the future. I would still stick by Tisco or Sail as I have mentioned before.
Navin asked, I have 68 HDIL shares at IPO price of 500, should I hold or sell?
PRANAV SANGHAVI answers, Book profit and look at Unitech or DLF.
Ganesh Natarajan asked, i have 100 shares of raj tv @ 251. Can i hold or book loss?
PRANAV SANGHAVI answers, Yes and switch to a growth stock. The media sector has not performed in tandem with the markets.
husainy asked, do you think this trend will continue till diwali as we see to-day market trend.
PRANAV SANGHAVI answers, I think the uptrend will continue for another 2 to 3 years to come with its timely corrections as we saw in March and July/August.
parveen asked, can i pick R.Com, Rel Petro, IFCI for one to two year at current price
PRANAV SANGHAVI answers, Yes you could.
gully asked, Mr. Sanghvi, Hi. I have 36# TCS at 1174. And #30 HCL at 347. But all IT shares are down. What do you suggest I do - if I have to wait. How long should I wait. The dollar is only going down. Can I hope to atleast sell out without profits soon and look for lower rates ?
PRANAV SANGHAVI answers, Maybe for over a year.
gandy asked, hi pranav... what are the prospects of sanjivani parentaral?
PRANAV SANGHAVI answers, Hi I dont' follow that stock sorry.
deepak asked, deepak fer. buy 100 @108.00 hold sale
PRANAV SANGHAVI answers, You could book partial profits.
Win asked, Hi pranav..wats ur call on Banking scripts like Vijaya bank, Indsindh bank, and UCO bank
PRANAV SANGHAVI answers, Already answered in this chat. Please refer.
Prabahar asked, Is it right time to invest in UTI infra & Reliance Growth MFs? Investment amount is little big. Should I wait or Invest today?
PRANAV SANGHAVI answers, I had mentioned that all those who wnated to invest in MF's a sharp correction would be best time when the Index was around 14,000 in my previous chats. If you do invest now the NAV's will be around their all time highs. So one should be carefull.
Tanya asked, Good afternoon sir, Please inform your views on Geojit Finance and Punj Lloyd
PRANAV SANGHAVI answers, I think Geojit is a quality financial services stock with investment made overseas and strong promoter group. I think it is aggressive enough to give decent returns to the investor. Punj Lloyd can also be looked at. They have given promising results last quater if it continuess to do so over the enxt few quarters it shoudl give a good return.
Navin asked, Hi Pranav, what's ur opinion on D-Link..I have bought at 97 and it's currently trading at 77. Should I hold or sell? Also tell me whether I should enter Moser baer now?
PRANAV SANGHAVI answers, I would hold DLink.
Navin asked, Hi Pranav, what's ur opinion on D-Link..I have bought at 97 and it's currently trading at 77. Should I hold or sell? Also tell me whether I should enter Moser baer now?
PRANAV SANGHAVI answers, I would hold DLink.
sri asked, Is it good time to buy iGate shares?
PRANAV SANGHAVI answers, I don't think so.
kshitij asked, Sir. I have ICICI, omaxe, HDIL and DLF. kindly advice as to ho;d or exit at what price
PRANAV SANGHAVI answers, You could continue to hold.
Marc asked, What are the future prospects of Tech Mahindra ? It seems to be going no where for the last 6 months
PRANAV SANGHAVI answers, Tech Mahindra like any other tech stock faces the negative factor of the Rupee appreciation vs the dollar. I would surely hold on to the stock as it is a quality tech stock.
gully asked, Mr. Sanghvi, good day sir. Is it fine to enter the banking stocks at this level ? if so can I invest let's say 50000/- in banking equities. I have reasonable risk taking capabilities. May be you can also suggest me specific bank stocks and the time frame I can hold. Thakns in advance.
PRANAV SANGHAVI answers, Good afternoon Gully. I think you coudl look at them. Stocks like SBI, ICIC, HDFC Bank, Vijaya, IndusInd, Allahabad etc.
vinit asked, Hi, I want to buy stock of Bombay Dyeing is this the good time ??
PRANAV SANGHAVI answers, Yes you could. The textile sector is not going anywhere but the real estate development plans of Bombay Dyeing look promising and they have land in prime areas in the heart of Bombay which could yeild good returns on development.
PRANAV SANGHAVI says, Well its time for me to go and it has been great chatting with you'll on this historic day. Happy investing. Bye.
Chat with Pranav every week!
Also Read: