The Indian stock markets are soaring like there is no tomorrow. Starting at 13,000 in the beginning of this year, the Sensex crossed 20,000 intra-day on October 29 and then shot past the magic number on December 11. The markets did see a bit of a correction and are now hovering around the 19,000 levels.
Will the Sensex sustain the gains or will it go down again?
Where is the stock market going? Will it rise further? Or will they crash again? What should a small investor do in such a scenario? Should he hold on to his stocks or sell them? Should he buy stocks now or stay away from the market?
In an hour-long chat on
rediff.com on Wednesday,
market expert Pranav Sanghavi responded to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Hello everyone and welcome to the chat. Let's begin.
mitesh asked, i have invest in RELIANCE NATURAL AT WHAT PRICE I EXIT PURCHASE 100 SHARES @ 162
PRANAV SANGHAVI answers, at 2007-12-19 11:59:19It will depend on your profit target. I guess if you wait for another 3 to 6 months you should see a profit.
Anila asked, Would it be right to Bharti Airtel at the current prices?
PRANAV SANGHAVI answers, You could look at it with a long term outlook. Right now the prices have corrected due to the proposed policy changes by the government where it looks that RComm will be the major beneficiary.
bhatt asked, Good Afternoon From past few weeks Pharama sector is moving any news on it. Iam holding glenmark@45 1400shares and Nicholas @259 500share pls advice to hold or sell
PRANAV SANGHAVI answers, The Pharma sector has underperformed the market and their performances have not been that bad for them to lag behind. I guess they are catching up with other index stocks. Both can be held on for a long time. Both are good quality stocks.
sahil asked, Hi Pranav, your views on GTL Infra & SpiceJet. It is a good term to enter these scripts?
PRANAV SANGHAVI answers, GTL infra has two things going for it, the Infra in its name and some operator type activity which has pushed up its price. I would though not enter either of the stocks right now.
mitesh asked, DISH TV PURCHASE 100 NOS @81 PER EACH WHAT LEVEL I EXIT
PRANAV SANGHAVI answers, It depends on what is your profit target.
kabeer asked, if i want o invest Rs.1 lac for i year , which stocks will fetch good returns
PRANAV SANGHAVI answers, I would stick with the frontline stocks like RIL, SBI, L&T, DLF etc.
sumanth asked, Hi I entered into the market on 12/dec and invested my entire savings in mutual funds. The investment stands down by 6 percent. What do i do now
PRANAV SANGHAVI answers, With a longer term the funds should perform well provided you have invested with the divcersified lasrge cap funds. If you have invested in sector specific funds then it will depend on the performance of that sector. And I would surely change your investment advisor who has asked youi to invest your entire savings in MF's.
narain asked, Dear Mr.Pranesh, Pls advice on TELECOM Stocks. Is it good to be in this sector for 5 yrs. i have idea 500 @ 100 & RCOM 100 & 500 pls advice
PRANAV SANGHAVI answers, Our telecom industry is definately a lucrative market what with the world's largest player Vodafone having taken such a big bet on it. You could surley look at the sector with a long term outlook for good returns.
kk asked, Whats your take on NTPC, Yes Bank and 3i Infotech? Is it the right time to buy these shares
PRANAV SANGHAVI answers, I have been recommending NTPC right from last year when it wasRs. 75 levels. I still think it is a good bet. You could definately look at Yes Bank. 3i Info you oculd wait for a bit.
DK asked, WHY IS LLOYD STEEL DOWN SO MUCH AND NOONE IS BUYING IT RELIGARE HAD RECOOMENDED IT
PRANAV SANGHAVI answers, Well Lloyd steel was a defunct company and was on the verge of bankruptcy at one time. They also were in BIFR and in deep financial crisis. So it does scare people to enter such stocks especially when TISCO is available at lucrative valuations.
rishi asked, what abt power grid and rnrl for a three months take. I have 500 of eac at 130 and 150
PRANAV SANGHAVI answers, You cna surely hold on to Power Grid with a long term view. RNRl will depend onthe outcome of the case regarding the Gas reserves. Till then it should remain range bound.
Tushar Tanzania asked, Hi.IDFC,NTPC,IDBI, are these stocks ok to enter at these levels
PRANAV SANGHAVI answers, With a long term outlook you can enter all the three. They are quality midcap stocks with long term potential.
rajm asked, Hi Pranav, Good Morning, Can you please suggest to me whether Facor steel is a good script for long term hold, have purchased it at 12.53, also would you recommend buying Airtel and lloyd steel at current price
PRANAV SANGHAVI answers, If you are making profit, I would exit. Swithc to a SAIL or TIsco. You could look at Airtel with a longer term outlook but I would stay away from Lloyd Steel even though it is a momentum stock and in the short temr you may see some rise.
Sanjeev asked, Hello Sir, How are you? I have just opend DMAT in icici bank. 1)I want to start investing in blue chip share for long terms more then 5 yes- which one is better pls advice. 2) I also want to start SIP in any mutual fund Rs 1000/- per month--pls advice which one is better. 3) Please advice any kid plan for education and marriage. Thanks in advance sir. PLEASE DO REPLY.
PRANAV SANGHAVI answers, Please send me an Email with the detailed query as it would take me a long time to answer this question on this chat.
Manish asked, Dear Pranav ji. If I would like to Invest rs.15000/- what are the best scripts. What would be market in next 2-3 months
PRANAV SANGHAVI answers, I would surely look at RIL, SBI, L&T, BHEL etc.
Altafhusain asked, Salam Pranav, can i buy rajesh Export at current level, thnx
PRANAV SANGHAVI answers, I would stay away from that stock.
Shiv asked, I have taken 30 shares o icici bank @ 1140 . i am short term investor. what do you think is the target ?
PRANAV SANGHAVI answers, I think ICICI is a good stock with short and long term outlook.
raju75 asked, hi what about tourism finance corporation of india(TFCIL)
PRANAV SANGHAVI answers, That stock is on a tear today. I would hold on.
mats asked, Hi Pranav..GM.. what abt power grid?
PRANAV SANGHAVI answers, HOld on.
sharadr asked, If the latest Merrill Lynch report is to be believed, Reliance Petroleum will be merged with Reliance Industries Ltd (RIL). Can u comment on this?
PRANAV SANGHAVI answers, I don't think DSPML has released a report saying that the two companies will merge. There is a possibility. If that does happen it will create a giant which will result in economies of scale etc.
Rajan asked, I have Rolta, Sterlite Industries, Gujarat NRE coke, Mothersun sumi, UTV Software, Reliance Industrial Infra. Can you see any wrong picks in these ones?
PRANAV SANGHAVI answers, ALl are decent midcap picks.
Don asked, What do u think about GTL Infra? Good to enter at 85-87?
PRANAV SANGHAVI answers, I was just yesterday given a target of 120 on the stock but it looks like an operator driven scrip so I would steer clear.
ramdongre asked, Hi Pranav,Should I buy Compton at current Price ,what about PetronetLNG ?
PRANAV SANGHAVI answers, Yes you could surely look at Crompton. Petronet I would wait for a massive correction of about 15 to 20% on the stock to get in.
rahul asked, im having bellary steel share should i hold or sell & what about ispatindustrie share
PRANAV SANGHAVI answers, I would book profits on the stock.
umesh asked, i am holding idbi, shall i told or there r chance for upside
PRANAV SANGHAVI answers, I would surely hold on.
ravi asked, i had invested in tata steel(200) and parvanath(200) at @905 and @417 when i should release these stocs
PRANAV SANGHAVI answers, Tisco you can continue to hold. The true value will unlock in a couple of years when they have managed to reduce the debt on its balance sheet to acquire Corus and the Corus earnings and turnover gets added on to its balance sheet. I would look at Unitech or DLF instead of a Parasvanath.
ayyangouda asked, i took powergrid 1400 shares@141 what the prospect
PRANAV SANGHAVI answers, If you have bought with a long term outlook then you could surely hold on.
harrybull asked, Hi Pranav, whats your take on GMR Infra over one year horizon?
PRANAV SANGHAVI answers, Hi Harry, I think GMR has decent potential to give substantial returns over the next couple of years. They have bagged some prestigious contracts and also bidding for some overseas contracts.
kuldeep asked, what is the future of Jaiprakash associate, should i buy now or wait
PRANAV SANGHAVI answers, I would wiat for a correction.
test asked, Pranav What you think about IFCI with long term prospective as the 26% sale is in final stage?
PRANAV SANGHAVI answers, If the winner gets management control too then I owuld hold on. If they don't get management control, I would get out.
jose asked, should I hold on to Reliance enrgy bought at 1200??
PRANAV SANGHAVI answers, Yes you could surely hold on. January should see new highs for this scrip.
Sri asked, Is it good time to buy Idea, TTML, MRPL and Ashok Leyland?
PRANAV SANGHAVI answers, They all have moved up substantially so I would