Two days after the Sensex conquered the 19,000-mark, it was bloodbath at the stock markets on October 17. The Sensex plunged by 1,743 points, the largest fall in a single day ever witnessed in the history of the Indian stock markets. The markets however recovered the losses.
Why did the stock market crash? Is there any reason to panic? Will the Sensex sustain the gains or will it go down again? Were you hit by the Sensex crash? 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?
Market expert Pranav Sanghavi answered many such readers's queries in an hour-long chat on rediff.com on Wednesday. Here's the transcript
PRANAV SANGHAVI says, Good afternoon everyone and welcome to the chat. Let's begin.
venugopal asked, Hi Pranav, I have ITC@161,IFCI@78, TELEDATA@66,Tata power@1220, RNRL@46, Welspun Gujarat@230. Should I hold all or sell some shares? what is u r views on Tata power?
PRANAV SANGHAVI answers, You could hold onto them. Tata Power looks good at these levels especially for a 2 to 3 year outlook.
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great asked, Good afternoon Sir. Whether DLF entry in to sensex by November 16, will give weightage to sensex to cross 20,000 by december
PRANAV SANGHAVI answers, Well DLF may not get a huge weightage like Unitech. it is RIL, ONGC, SBI and other such stocks which are index heavy.
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srinivas asked, I purchased powergrid at 104. can i hold now.. i can wait for1 year
PRANAV SANGHAVI answers, Yes you could hold surely.
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SHIRISH asked, WHAT IS THE PROSPECT OF JAI CORP FOR NEXT 5 YRS. I HAVE PURCHASED 50 @1200/- RECENTLY. PLEASE ADVICE. NOW IT HAS DOWNWARD CIRCUIT SINCE LAST 4 DAYS
PRANAV SANGHAVI answers, I did study their balance sheet after the stock has skyrocketed. But the balance sheet does not justify the meteoric ris ein prices. It is a pity that SEBI chooses to overlook such rises in companies like this where Dhirubhai Ambani's 3rd son is Mr. Jain is the promoter.
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bigbull asked, Hi pranav, India bulls came out with good results it is good buy @ 600 or you suggest sell
PRANAV SANGHAVI answers, I would surely look at the stock.
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Anwar asked, Dear Pranav, I have been observing that whatever advise u give falls in line with the market performance. This is helping many small time investors having very little or no stock knowledge. Keep the good work going on.
PRANAV SANGHAVI answers, Thank you for your kind words.
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uma asked, Hello, morning, What are prospects for Riddhi Siddhi Gluco, Gati, CONCOR ?? Are they worth investing at current levels for long term ???
PRANAV SANGHAVI answers, Gati and COnCor look good holds. COnCor has risen over the past months but looks to continue its growth in the future also.
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Abhinandan asked, Hello, i purchased ISPAT shares for Rs 29 before the market crash and now its struggling at 28 will there be any chance of ISPAT shares reaching 30
PRANAV SANGHAVI answers, The stock has been moving more on news than fundamentals. It could see that price again.
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deepak asked, hello pranav which are the stocks i can take at present i have rpl 900 rcom 50 unitech 220 and wipro 50 i intend to buy l@t and others pls suggest some for better
PRANAV SANGHAVI answers, L&T, IDFC, Power Grid, NTPC, FT all look good with a medium to long term view.
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Pallan asked, Good afternoon Pranav. I am holding Rel com, RPL, RNRL, Guj NRE Coke and Tata Tele. Can you advise me as to which stocks I could hold for long term and which ones I should liquidate?
PRANAV SANGHAVI answers, RPL, RNRL, Guj NRE, could surely be held. You could book partial profits on the other stocks.
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akash asked, when someone asks you technical analysts if he/she could buy to invest, you say let's wait for correction for an oppurtunity. Sensex 7000 "let's wait" 8000 let's wait 12000 let's wait 15000 let's wait 19000 let's wait. I am still waiting Pranav. Let me know when to enter. ok?
PRANAV SANGHAVI answers, That is incorrect. Whenever I have said wait for a correction, in a very short while say 1 day to 5to6 days there has been downward corrections in the market. You could corelate my chats from the past 1 year with the sensex movements.
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Hitesh asked, IS it right time enter for PNB @513..how much return we can expect in the 2-3 months time and in one year.
PRANAV SANGHAVI answers, You could look at a 7 to 10% return over a 3 months time frame.
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shyam asked, hello sir, i am to begin investing in shares in a couple of weeks. do u think it is advisable to do so in a volatile market?kindly advise
PRANAV SANGHAVI answers, I would advise you invest through MF's. The markets are extremely volatile and both news and fundamental factors are affecting the market making it swing wildly on a daily basis.
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Anwar asked, What r u views on Cement & Steel stocks? Thanks.
PRANAV SANGHAVI answers, I am surely bullish on them with a longer term view. Our infrastructure growth will keep up the pent up demand in cement and steel.
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mitesh asked, I have purchased firstsource @75 can u tell us short term target
PRANAV SANGHAVI answers, You could see a 30% return on the stock ina years time. I won't be able to give youa price target as I am not a technical analyst.
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Srikanth asked, Cau y give me your email id so that i can get advice from you as from here i can't infomr my portfolio
PRANAV SANGHAVI answers, sanghavi_p2006@rediffmail.com
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shrikant asked, Hi Pranav-ji, will u pl tell me can IFCI will touch 100/= before this Diwali?
PRANAV SANGHAVI answers, It could touch depending on the news flow on the stock.
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krk asked, I want to invest 25,000/- in icici bank or sbi or bank of india. What is your preference scrip for holding upto one year.
PRANAV SANGHAVI answers, I would prefer SBI from the three then ICICI.
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bigbull asked, India bulls buy or sell @ 600/-
PRANAV SANGHAVI answers, I would hold on. As it is an aggressive company with aggressive growth plans.
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Anwar asked, I want to invest i million in stocks. What should be the no of stocks in my portfolio. Should I go for Power, banks, diversified, infra, auto...sectors?
PRANAV SANGHAVI answers, You could look at a mix of 4 to 6 stocks in the power, telecom, infrastructure (including real estate and cement) and bank sectors.
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ketanshah asked, Hi Pranav, Good Afternoon....Pl advice on KEC infrastructure (around 30/-) . I m strongly adviced to BUY without waiting.....Shall i go for large purchase or in small lots?
PRANAV SANGHAVI answers, I am not too conversant about the company so I wouldn't be able to help you sorry.
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kiran asked, I am from Hyd and I am investing 30000 RS a month in 4 SIPS ( DSP Tiger, SBI Magnum growth, ICICI Pru Growth and Reliance Growth Fund) ..I want to do this for 10 yrs..do you recommend continuing or moving to some thing else..Pl suggest
PRANAV SANGHAVI answers, I think you have picked decent funds DSP Tiger especially. I think they have performed well and look to do so. I think it is a sound method of investing ad you should landup with decent returns.
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DS asked, In power sector which stocks I should enter presently for maximum return within one & half years perspective. Price involvement is Rs.50,000/-.
PRANAV SANGHAVI answers, I would look at NTPC, Power Grid.
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MAK asked, Is it still right time to invest in infrastructure sector including power, keeping in mind its current valuations?
PRANAV SANGHAVI answers, Yes i would still look at them as they are still in the nascent stage. We are grossly under powered country and our power sector needs to grow at a tremendous pace.
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Anwar asked, Globally markets r not performing well. Is it right? Is India heading for a BIG investment hub for Foriegn investors?
PRANAV SANGHAVI answers, I would not agree. Even the US economy is on uncertain grounds their market is around their all time highs. Most other markets are also doing well. But yes India is receiving a lot more attention from the investors overseas as our economy looks to be growing from local demand and not only on US driven exports.
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Avinash asked, hi pravin... is it right time now to take Power grid (@Rs.140 - 500 shares) for about 5- 6 months. or wait 2-3 days to come stock a little down.
PRANAV SANGHAVI answers, If the PNotes issue gets a negative outlook from SEBI then the markets could correct some more. So you could buy then.
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jayati asked, relcom view for short term
PRANAV SANGHAVI answers, I am pretty bullish on the stock and surely should be held on to. They have posted fantastic results and I think they will continue to do so.
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Hafiza asked, Hi Pranav, What will be the future for Tata motors, Indian Hotels and Ranbaxy? I hold these stocks with negative returns got at 727, 148 and 392 respectively :(
PRANAV SANGHAVI answers, I think you should surely hold on to Tata motors and Indian Hotels but Ranbaxy could be switched to a Dr. Reddy.
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jayati asked, hi sd i purchase ntpc n ongc at current level?
PRANAV SANGHAVI answers, You could with a medium term outlook. But tomorrows clarifications on P Notes will be crucial how the markets will perform in the very short term.
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jayati asked, hi pranav ,i ve purchased 200 dlf shares for rs 870 ..sd i hold it?
PRANAV SANGHAVI answers, Yes. That is at thehigher end of the price band it has been in but still with a longerterm view I think you will see profits. I think the stock has been rerated.
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zips asked, Dear Pranav, wat should be the trategy to hold or sell the following shares bought at ipo- syndicate bank,IOB,tcs,prime focus,beml,idea,ntpc.
PRANAV SANGHAVI answers, Hold on to NTPC and Idea. others you could switch.
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Anwar asked, Hello! ICICI bank @ 1146, HDFC bank @ 1493.50, Rel Energy @ 1905, RCom @ 763.95. Hold or Sell. I want to invest more. what's ur call? I m ready for ample risk. Thanks.
PRANAV SANGHAVI answers, All the stocks are fundamentally strong and look to appreciate in thelonger term. REL has goneup too fast but ther others surely could be held on.
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San asked, Hi Sanghavi, I have 800 shares of Magnum ventures with buy price 37.29 and 200 shares of Clutch auto with buy price 148.82. What should I do with these stocks?
PRANAV SANGHAVI answers, Magnum I am not conversant with but Clutch Auto you could definately hold on to.
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zips asked, I have nestle and karur vysya bank.Even at 19000 these stocks have not reached their yearly high level.What should i do hold or sell.
PRANAV SANGHAVI answers, I would switch from both these stocks as they have been underperformers especially Nestle. i would look at a growth stock.
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Shafat asked, I intend to buy RPL around 1000 shares, I was expecting their rates to fall, but they have started to rise since yesterday. What will their rate be in the coming days
PRANAV SANGHAVI answers, Buy into RPl at corrections. But even in the last correction RPL did not fall as much as the markets did. That shows the strength of the stock.
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lokeshbh asked, i have idea 4000 shares purchased @120 ave,Power grid 2000 @ 134 i am looking for 3 months investment should i hold or sell
PRANAV SANGHAVI answers, Surely hold. I would infacthold it with a longer view also.
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ramm asked, shuld i hold chambal fertisr...i have been holding d same for a yr. now...i bought it at Rs40.00
PRANAV SANGHAVI answers, It had a recent highof around Rs. 60. It would have given you a 50% return. But you could hold on and book profits nearer to the earlier high.
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rajiv asked, Hi pranav, is it the right time to buy clutch auto, escorts, compact disc india, phillips carbon...do you forsee any more correction in the markets for the interim period lets say within a week?
PRANAV SANGHAVI answers, When the markets correct. I justmentioned if there is any negative newsthe markets could correct.
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Mani asked, Hi Pranav, Do you thinks the market will slide further?
PRANAV SANGHAVI answers, If there is some bad news in terms of FII's and the Participatory Notes tomorrow the markets could tank again. As a lot of money has come in through the P Notes into India. There is ofcourse the Political sword hanging which has been postponed to the 15th of Nov. But corrections only make the markets healthier and should be treated as buying opportunities.
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bnraju asked, i have purchased uco bank 100 shares for Rs 44.00 .... but the price is reduce to 41.00 should i hold it or sell??
PRANAV SANGHAVI answers, I think it has moved up today. You could surely hold on if you can hold for 3 to 6 months.
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shanu asked, I am in hope that the sensex may climb the figure of 20000. Please advice as per your knowledge. Thank you.
PRANAV SANGHAVI answers, If we have another 1 or 2 more quarters of good growth results we could see that magical figure.
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vikram asked, Sir I have HDFC Equity, Rel. Power Div., DSPML Top 100. And planning to buy Reliance Growth, Fidelity Equity and FT Flexicap. Please advise what to do?
PRANAV SANGHAVI answers, These are pretty diversified MF's. It looks like a good mix of investments.
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amitayus asked, hi, will be right to enter SAIL & NTPC at this level?
PRANAV SANGHAVI answers, You could enter. The two days that the market corrected would've been the best days to buy. In my previous chat I had kept repeating buy on corrections and dips and those two days were excellent buying opportunities.
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Manish asked, is it advisable to hold the stock of REL at 1609 or should i quit, i am having 200 shares
PRANAV SANGHAVI answers, It has bounced back extremely quickly but to me the valuations look a bit lofty for a power stock.
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ram asked, Hi Sir, Can we buy RPL, RNRL, IDFC and Power Grid at the current price also for 1 year
PRANAV SANGHAVI answers, I would surely look at them. Markets have corrected due to the SEBI's newregulations for FII's and Participatory Notes. But all these stocks especially IDFC, Power Grid and RPL could be looked at with 1 year outlook.
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santoshnde asked, i had tube investment shares @57.4 currently it is trading at 55. 0 can i hold or sell the shares
PRANAV SANGHAVI answers, You can hold on, it is a decent mid cap stock.
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yousuf asked, Why did the stock market crash? Is there any reason to panic?
PRANAV SANGHAVI answers, If you are a longer term player then you should surely not panic. I had said the same things last year when the markets had crashed and see where the markets are today. I would get perturbed if our corporates stopped giving the growth performance they have for say 2 or 3 consecutive quarters.
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vibhu asked, wat about RNRL for long peroid for 2/3 yrs
PRANAV SANGHAVI answers, You could hold on as something is surely brewing in the stock.
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santoshnde asked, what is the best price to by Unitech share?
PRANAV SANGHAVI answers, The besxt price obviously would be the face value but you are not going to get it at that rate. You will have to value the stock based on its past performance and balance sheet and the PE multiple that the market hs given it. I would enter blindly if the PE multiple was around 15.
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isha asked, hi pranav, what are your opinions on indusind bank and centurion bank. shall i hold or sell them
PRANAV SANGHAVI answers, Indusind Bank saw some spurt yesterday. All the banking stocks have given decent results and look good with a 6 to 12 month perspective.
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isha asked, hi, i have 100 shares of RPL and power grid and 10 of DLF . should i sell
PRANAV SANGHAVI answers, Not at all. All are excellent stocks and please hold on.
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SIVASANKAR asked, What is the today market trend
PRANAV SANGHAVI answers, Today the market has been a bit volatile but it may end slightly on the positive side. Although no one can predict how the markets could move in the next one hour let alone the whole day.
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Swati asked, How is power grid Stock? Is this is right time to enter in this stock? I am looking for 1 year investment
PRANAV SANGHAVI answers, I think it is one of the more promising stocks from the newer listings and I would surely look at it even at current levels. Even when the market fell viciously Power Grid didn't fall as much.
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abhishek asked, i have 25 share of jindal saw at price of Rs 660/- now this stock is trading at 600/- so what is the price traget in two or three month
PRANAV SANGHAVI answers, I would hold on. You could see your price once again in that time frame.
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TAPAN asked, SIR I PURCHASED 40 PARSVNATH DEVELOPER @ 420 ONE YEAR BACK BUT ACCORDING TO EXPERT OPINION IT IS NOT GOOD STOCK AT ALL PLS. ADVISE WHAT DO ?
PRANAV SANGHAVI answers, I had mentioned about a month or so back to switch Parsvanath to either DLF or Unitech. Both the stocks have appreciated in comparision to Parsvnath. I would still switch from Parsvnath to a better real estate player.
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nilu asked, At what levels do u think will gmrinfra reach. I have 80 @ 175. Is voltamp likely to move ahead from current levels @ around Rs 1200? how is cgl ? I have cgl @rs325. sould i hold?
PRANAV SANGHAVI answers, I think GMR Infra is a much longer term play. I would recommend you hold on for atleast a year and over to see good returns. I think Voltamp also is a good play with a 6 to 12 months outlook.
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anu asked, hi pranav, what is your view about the markets in short term?
PRANAV SANGHAVI answers, Hi Anu, in the very short term they could remain volatile but if you take even a 3month outlook I think the markets are poisedto rise gradually.
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PRANAV SANGHAVI says, Well it is time for me to leave. Hope to see you'll next week. Bye for now.
Chat with Pranav every week!