As the Sensex started edging downwards on August 16 nervous traders at the Bombay Stock Exchange traders wondered if it was going to be an August 1 type blood bath when the BSE Sensex slipped below 15,000 points losing over 560 points in afternoon trade on the back of extremely weak cues from the global markets. August 16 fall, however, proved to be even worse.
Did you make losses while the Sensex nose-dived? How do you plan to regain your ground? What should your investment strategy be? Should you invest more in the market? Or should you consider selling stocks to prevent further losses? 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 answered readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone and welcome to the chat. Let's begin.
Vikram asked, Good morning Sir, do u expect another correction? I have GMR Infra @ 805, Indiabull Real Estate @ 400, Indiabull Financial Services @ 400, Parsvnath @ 300, Unitech @ 537, Infosys @ 2170, TCS @ 1210. What to do in the above stocks purchased at higher level?
PRANAV SANGHAVI answers, at 2007-09-05 12:04:25Another minor correction could not be ruled out as the US turmoil is not completely over. Although our economy and corporate profits are gorwing at healthy rates. I would switch Parsvnath into a DLF or Unitech. Others you could continue to hold.
AM asked, Good Morning Pranav, Can you please tell me whether Bharat forge is still a good bet to hold i have 100 shares at 361. Or is it wise to sell it and invest in some bank?
PRANAV SANGHAVI answers, I think you could hold on to BF. It has been a strong performer in the past and steel as a sector looks good for the next few years.
kannu asked, Hi Pranav, seems that the correction is over... what r your views and strategy at this time?
PRANAV SANGHAVI answers, Markets look to be in a consolidation stage. They may take out new highs but I would still be carefull as I feel the US worries are not completely over. On september 18th at the FED meeting interest looks likely to be dropped. In that case the markets could surge a bit more. But in the October month we could see some weakness in the US markets which could translate into Indian markets as it did in August. Although I am very bullish on the Indian Coporate performace for the September quarter.
Vikram asked, Sir, I have also invested in Reliance Power Diversified MF, DSPML 100 (D), HDFC Equity, SBI Infrastructure, Reliance Equity, FT Equity Income. pl. suggest what to sell? Thinking to buy Reliance Growth and Vision or Magnum Global and Contra, Fidelity Equity... suggest whether it is good decision to dispose off existing and buy new one.
PRANAV SANGHAVI answers, I would need to study their current portfolio mix to be able to advise you. But if you are in large cap diversified funds you will be better off.
kannu asked, please recomend your top mid cap picks for long term.
PRANAV SANGHAVI answers, You could look at, IFCI, IDFC, NTPC, IDBI, FT etc.
satish asked, Hi,Pranav I have 85 shares@124 of reliance pertroleum so pl tell me hold or sell
PRANAV SANGHAVI answers, I would definately hold. There are talks of the refinery being completed ahead of schedule. When the commercial production does begin the stock should start appreciating faster. Till then it will move up in a steady manner.
sujata asked, hi
PRANAV SANGHAVI answers, Hi Sujata and what is your query?
ajay asked, hello sir .. gotta KPIT shares long bac @ 155 nd ryt nw its value is 120 .. so jus wanna knw ki till hw mny dayz rather mnths i mus hold
PRANAV SANGHAVI answers, As a mid cap stock it will take that much longer to gain its previous highs post a correction. But the midcaps have already started surging in the current market so you could wait for a bit more to see your price.
shibu asked, could you please suggest your best picks for 6-12 months outlook
PRANAV SANGHAVI answers, I would still go with frontline stocks like SBI, L&T, BHEL, RCom, Bharti, RIL and a few mid cap stocks like Financial Tech, IDFC, NTPC etc.
Vikram asked, Tell at what price I should buy L&T, BHEL, ABB, Bharti Tel and Reliance......
PRANAV SANGHAVI answers, If you are say a 2 to 3 year investor price or index is not a limiting factor it is the EPS and P/E ratio that you must look at. But at times of correction these stocks would make the best buys as they bounce back the fastest when the markets turn around.
mk asked, Hi, what is future of 3i-infotech and icici bank?
PRANAV SANGHAVI answers, I think ICICI will be an outperformer. It is growing at a good rate and looks to continue doing so. For the other one I would rather go with a Tech Mahindra or even a TCS.
Venka asked, Hi..Pranav.. Shall I buy ANSAL Properties and HINDUJA TMT at this point of time
PRANAV SANGHAVI answers, When the midcaps have already rallied it is not advisable as you will be entering at new highs on the scrip and any downturn these stocks get hit the most. Then you shall be stuck for a long time with t
thanky asked, I have DLF shares of 50. Should I hold or sell Now?
PRANAV SANGHAVI answers, Definately hold. As I mentioned in my previous chats I would accumalate more at lower levels.
Venka asked, Is UNITEC announced the bonus shares. My stocks has been plitted and I didn't get any additional shares
PRANAV SANGHAVI answers, You will receive the bonus shares post the record date. If you do not receive the same I would suggest you contact the company through your broker.
mkumar asked, Sir, Is it the right time to buy Reliance Communication for a short period and what is the exepected target of 3 months.
PRANAV SANGHAVI answers, I think RCom will again post stellar results for the quarter ending September. You could surely look at it. India is amongst the top 3 fastest growing cellular phone markets in the world. And RCom and Bharti are the leading players. I would look at a 10 to 20% return over the next 3 months.
animesh asked, What is the market future?? Is this a good time to invest in market? Specific to scrip which scrip you recommend.
PRANAV SANGHAVI answers, If you can invest with a 2 year outlook then this also is a good time. If you are a shorter term player it would be advisable to invest at times of corrections and dips.
Rajashekar asked, What is the immediate future of Infosys?
PRANAV SANGHAVI answers, Infosys has appreciated handsomely over the past 2 weeks. I still think they will underperform the markets due to the Ruppee appreciation issue. As when the markets stabilize the dollar flow into India, one of the fastest growing economies in the Emerging markets, will resume.
David asked, Should i stay invested in IDFC?
PRANAV SANGHAVI answers, Yes. Strong company, strong management, great sector. I think there is a lot going for IDFC. I would stick my head out and say you could see returns of over 60 to 70% in a years time in the scrip.
sasankajan asked, Hi Pranav,Please advise me about my holings, which are not performing. Can I sell it at the current prices or hold? These are the holdings:- Goderj consumer 100 @ 166, Ispat industries (2020) 200 @ 12.00, Visa steel 141 @ 57.00, LML 1000 @ 15.414, Hindustan motors 250 @ 40.90 and Rathi Udyog 283 @ 50.00. I know that I am asking about too many shares. Please do not ignore any of them. Thanks ion advance.
PRANAV SANGHAVI answers, You could get out of Ispat, Visa LML and Hind motor and Rathi. Switch to quality frontline growth stocks. God Cons you could hold on.
Alok asked, Sir, I have 10000 shares of Indraprastha Medical bought at 40. What is the outllok on the stock in the next 1 year
PRANAV SANGHAVI answers, I am sorry I don't follow that stock so will not be able to help you.
mahen asked, hello....can i buy paradyne infotech for intraday
PRANAV SANGHAVI answers, I am not a day trader nor do i advise it. Therefore I will not be able to help you.
reddy asked, i have 800 shares of EXIDE INDUSTRIES @ 63.10. howz the share going to be ? should i hold it? howz it going to be in long term
PRANAV SANGHAVI answers, I think you could hold it. They are coming out with a rights issue with a ratio of 1 share for every 15 held.
leo asked, ISPIND
PRANAV SANGHAVI answers, Do you mean Ispat Industries ? I would sell and get into Tisco or Sail.
raj asked, I have 50 Vishal retail @750/- should I book loss and exit or hold
PRANAV SANGHAVI answers, I think if you hold till April next year when it releases its year end results, you should see a profit.
alam asked, sir i am newly,please advice DMAT open through ICICI Direct or KOTAK SEcurities
PRANAV SANGHAVI answers, You can choose either. Even at the bank where you have your current or savings account.
royx asked, Hi Pranav, Last 2 chats, I had put my query. You did not reply. Please reply this one. Give me 5 scrips that will return 25% in the next 6 months.
PRANAV SANGHAVI answers, Dear Royx, I am sorry I have not been able to reply. It could be due to time constraints or the number of questions which i answer chronologically. Secondly I have mentioned more than 10 scrips in previous replies in this chat please refer. Thank you.
uddipan asked, What
do U say about BHEL , should I hold or sell it.
PRANAV SANGHAVI answers, Hold it surely.
poongu asked, sir,what about buying western india shipyard,southern iron and chemicals and hotel leela,RPL at the current levels? though ABGg haa aquired 40% stake in western india shipyard ,why it is not moving?
PRANAV SANGHAVI answers, You could surely look at RPL, and Hotel leela.
vaishnavsantosh asked, Hello Sir, I want to invest Rs. 25000/- time period is 2-3 years & also want to start SIP @ 2000/- PM (8-10 Years) please suggest me good fund. Thnxs
PRANAV SANGHAVI answers, You could look at large cap diversified funds like DSPML's Tiger fund or HDFC's Growth Fund etc. Templeton, Birla also have good schemes on offer. But past performance does not translate into future profits.
raju asked, sir, i want to know when rel.com demerge his tower business what benifit will be given to current rcom share holders?
PRANAV SANGHAVI answers, Technically you should receive one share in the tower business company for every share held of RCom if it is a 100% owned susbidiary. And I think it will only add value to shareholders.
ijas asked, Hi, I have 50 shares of bharti @ 810/- What would b the target @ a long term perspective?
PRANAV SANGHAVI answers, I would look at Bharti with a annual growth rate of over 30%.
BIRENDRA asked, PLEASE ADVICE ABT RNL & IDBI FOR 1 YEAR ...
PRANAV SANGHAVI answers, RNRL has been rangebound and recently touched the Rs 50 mark. IDBI has been a steady performer and has a hoarde of investments which are fast appreciating. I think over the next 1 year both could appreciate by around 20 to 30%.
poongu asked, sir, when i applied for 900 shares of central bank of india i got only 60 shares, whereas my friend who applied for 300 shares also got 60 shares? how can i calculate my allotment based on subscription?
PRANAV SANGHAVI answers, You can check the details of allotment criteria on SEBI's website.
raj asked, What is ur opinion on retail biz future will this stocks be wealthy in 2-3yrs period if enter now?
PRANAV SANGHAVI answers, I think the retail sector is still in its nascent stage. I think it has huge growth potential contrary to what some people believe. But the retail space acquisition space need to correct fo rit to be sustainable growth. You could look at Bharti, RIl and Future Group in the retail sector.
Manisht asked, Hi, I am thinking of buying Wipro stock, And thinking of holding it for one year. I need your opinion that it is good to do it at this time when rupee is appreciated.
PRANAV SANGHAVI answers, I think it would be a good contrarian call. As the company has posted excellent results and only the Rupee apprecaition problem has brought the price down.
eskay asked, Is it correct time to enter or average IT stocks?
PRANAV SANGHAVI answers, No, but you could look at some of the frontline stocks with a 1 year plus time frame.
sharmag asked, hi,I have 100 share of bajajhnd @335. should i hold or book the loss.
PRANAV SANGHAVI answers, I don't think in the short term you could see those prices. You seem to have got in at extremely high rates. The sugar sector as I have mentioned from my Feb/March chats looks to still remain an underperformer for some more time.
absar asked, Hello, What is the future of "Bellary Steel" and Chemoplast. Can i hold these. and also tell the telco's future
PRANAV SANGHAVI answers, I would suggest if you are in profits to book them and switch to frontline stocks.
sharmag asked, hi,I have 1000 share of gvfilm @11. should i hold or book the loss.
PRANAV SANGHAVI answers, Book losson GV. ITC and Ranbaxy and Idea surely hold.
sasankajan@
rediffmail.com asked, I have 15 Jinal poly @ 360, which I got the FPO. what is your sence the stock will reach the price in the next 3 months?
PRANAV SANGHAVI answers, I dont think it could reach your price in the near future. You may have to hold for much longer.
swarna asked, Hi Pranav, I have some stocks of IFCI at Rs 64.13. Should I hold them or book the profit @ Rs. 68
PRANAV SANGHAVI answers, I think you could surely hold. I see it to be an outperformer. If you hold for 6 momths to a year atleast.
eskay asked, HINDALCO showed some swing on buy-back news and again came back to square. Is it the time to buy or say good-bye?
PRANAV SANGHAVI answers, Hindalco wighed with the much larger foreign acquisition is a longer play stock. You can't look at it with a month on month basis. But look at the stock with a 2 to 3 year outlook.
ganesh asked, ur view on puravankara and ciple
PRANAV SANGHAVI answers, I think both should be underperformers. I would rather go with a Dr. Reddy and DLF.
absar asked, I am trying to buy Bajaj auto and larsen & toubro. Is this the right time to enter in these stocks, please advice Thanks
PRANAV SANGHAVI answers, Yes with a 6 to 12 month outlook you should make decent returns on both.
sasankajan@
rediffmail.com asked, Please tell me,about the ranking of Power Grid IPO
PRANAV SANGHAVI answers, I think you could apply but not get allotted a large quantity as it looks to be oversubscribed hugely.
sharmag asked, what is the future of infosys i have 72 share @2040. should i hold or sell now
PRANAV SANGHAVI answers, Hold.
lakhani asked, What is the outlook for NTPC in near term, I have bought it at all time high
PRANAV SANGHAVI answers, I have been recommending this stock since last year from Rs 75 levels on this chat. I still am bullish on NTPC as I still feel INdia's demand for power plants is far higher than what we are able to deliver.
amar asked, Is nifty going to go up today and this week?
PRANAV SANGHAVI answers, No one can predict how the markets will move accurately as tonight there may some adverse news from US and the markets could tank tomorrow. But I think the markets will remain rangebound in the short term atleast till the SEP 18th when the FED announces its decision on interest rates in the US.
shilpa asked, what are media picks and is it riht to time to buy them , if so how long it should be hole
PRANAV SANGHAVI answers, All the media stocks are witnessing a 4 to 7% spike today. I think they have been underperformers. But with the upcoming festive season most of the media companies see higher advertisement spend from corporates and in that expectation I think the markets are riding the stocks up.
sffdsd asked, I have taken the 50 shares of Rel Comm. at 534. What is the future prospectus? Should I hold or sell? How much profit can I expect in 6 months time frame?
PRANAV SANGHAVI answers, You could surely hold. You could see a 10 to 15% return over six months.
gautam asked, Dear sir, where do u see the sensex after 5 years ie in 2012
PRANAV SANGHAVI answers, I am an eternal bull and I would not discount an Index of over 20,000 beyond 2010. I think India has the potential to become an economy to reckon with and our FM and PM look to be on the right track. Our earning and spending population in India looks to grow to over 200 million by 2012 as compared to below 100 million people currently. That much additional spending could surely see our economy to continue growing at over 8% for another 5 years or so.
rajan asked, Hi Pravan! What's feature of BHEL & VOLTAS plz let me know the specefic Target! ThanX
PRANAV SANGHAVI answers, I wont be able to give you a specific target as I am not a chartist. But both have good growht prospects and you should see over 30% returns in a years time.
abc asked, Hi .. I have 150 shares of Idea cellular @122.50 ... what is the prospect over next 4 months ?
PRANAV SANGHAVI answers, I think you could see a 10 to 15% return over that time.
bullcart asked, Is it the right time to enter UCO Bank?
PRANAV SANGHAVI answers, A lot of the mid cap banks are rallying and UCO is no different. You could look at it.
AB asked, u r views on India Bulls . how about entry at this level
PRANAV SANGHAVI answers, The financial services or the real estate firm. I think the real estate company has still to deliver on its completion of the proijects and then see the substantial profits it has projected. If it completes them successfully the stock could appreciate handsomely.
shaikhaikh asked, I have 50 shares of TCS @1300. Please let me know what should i do.
PRANAV SANGHAVI answers, Wait.
santh asked, Hi Pranav, I hold 50 bajaj hindustan and 50 syndicate bank stocks.What is these stocks future in 2-3 month and long term
PRANAV SANGHAVI answers, Bajaj you could swith to another stock and Syndicate Bank you could hold on. A 15% return cannot be ruled out.
abdul asked, hi Pranav thanks for all the questions you have already answered i m holding McLeod Russel 500@62 I would like your views on this
PRANAV SANGHAVI answers, Mcleod is in the Tea sector which is a cyclical commodity. I don't see a great future for the stock. I would get out and look at other growht sectors like banking, cement, infra, engineering etc.
PRANAV SANGHAVI says, Well it has been great chatting with you guys. Hope to catch you'll next week. Bye for now.
Chat with Pranav every week!