After opening the week on a buoyant note, when it closed above 500 points, the Sensex once more ended down over 500 points on global cues.
But is the worst over? Or is the Sensex likely to sink further? What strategy should you follow? Is this the right time to buy stocks? If so, which stocks and sectors should you concentrate on?
In an hour-long chat on rediff.com, stock market expert Pranav Sanghavi replied to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone and welcome to the chat. Let's begin.
preety asked, hi pranav i have got 9 shares of punjlloyd, 10 relianceinf, 40 chambal, 14 rnrl, 2 adlabsfilm.what do you think about these shares? is it wise to invest in reliance energy and sbi right now?i have 16 shares of reliance power also, what are it's future prospects?
PRANAV SANGHAVI answers, at 2008-02-13 15:59:15Hi Preety, Punj and Rel Infra and Adlabs are fine. The other two are more of the liquid speculative stocks that had risen up very quickly and also fell very quickly. They are essentially trading stocks. The others could be held as investment.
aabhi asked, Hi pranav! 2 years before i asked abn amro to change a purchase of 15000 into EMI. they did nothing. Now they have deducted this amount from my salary without notification/ecs/postpaid cheque. Is it a legal or illegal to handle a saving account without informing me.
PRANAV SANGHAVI answers, Hi Aabhi, I am assuming you are referring to problems related to credit cards. Unfortunately, I won't be able to help you there. You will need to see a good consumer court lawyer and take up the matter with the Bank in question.
Tashan asked, What is ur call on JP Asso for a year
PRANAV SANGHAVI answers, Despite the carifications from the management, the stock kept falling through most of the day. There was some talk of a stake sale by the company in the Taj highway project. The company clarified that it had no such plans. On a long term basis you could hold the stock.
ravi asked, hello pranav! i was allotted Reliance Power Shares i am in confusion to hold or not
PRANAV SANGHAVI answers, Hello Ravi. A question I'm being asked by everyone. I think the issue price was a bit on the higher side considering the company has not even a single power plant commissioned. By 2012 they will have the capacity that NTPC has on ground today. So giving it a valuation that would be even 50% of NTPC today would not be fair. I think the stock could fall a bit further at which point one could make an investment with a 2 year outlook at least reminscent of RPL when it was around 30-50 a couple of years back.
riyas asked, Hi Pranav, I have invested in HDIL, canara bank, Reliance Energy and suzlon. What would be future of these stocks. Will they bounce back in 3 month times?. Is this the right time to invest in Mutual fund as NAV price is getting down. Thanks
PRANAV SANGHAVI answers, I like all the stocks you mention. Only instead of HDIL I would rather hold a DLF at current levels. When the markets bounce back these stocks will also bounce back. Yes you could look at MF's and make an entry at lower NAV's.
Tashan asked, Rcom or Bharti at these levels?
PRANAV SANGHAVI answers, All fingers point to RComm as they will benefit more from the proposed changes by the Telecom Ministry as compared to Bharti. But Bharti will surely not sit around and will gear up for higher competition and try to continue delivering its growth.
Milind asked, Do you think that Reliance power will touch Rs. 500/- per share before the end of this financial year. Please advise.
PRANAV SANGHAVI answers, I am no astrologer but yes the stock could see that level during the course of the year. It looks difficult looking at it in the current scenario. But most valuations didn't make sense in November and Dcember last year.
anil asked, at what price can we purchase unitech RNRL RPL NTPC and Power grid share
PRANAV SANGHAVI answers, NTPC, RPL and Power Grid could be bought in parts on every dip in the markets like we saw yesterday. For RNRL I would wait for the courts ruling in it's battle against RIL.
bullstock asked, hi pranav, Whats your call on walchandnagar
PRANAV SANGHAVI answers, Its a decent play in the real estate/infra sector. You could look at it with a long term outlook.
Laila asked, Good afternoon. Where do u see markets stabilizing from here?
PRANAV SANGHAVI answers, I think the weakness is not completely over. There could be further weakness before the markets stabilize and eventually move up. The trigger could be as near as the budget or as far as the March quarter results in the month of April.
RNRL asked, Whats your take on Rpower share.I think there project will start from 2009.What do u say abt the future of this stock.I have 100 shares of Rpower.
PRANAV SANGHAVI answers, I think they will have a lot more announcements to boost the stock price in the coming years and will not wait till the completion of its projects for 4-5 years.
kris asked, Purchased tatmotors at 759, siemens at 1480, nel at 1400, mysore cement at 64, sundaram brakes at 390 and concor at 1630. cAN i HOLD THESE FOR LONG TERM
PRANAV SANGHAVI answers, Yes they are pretty decent picks, I would surely hold on to them.
Laila asked, Sir what is ur call on SAIL and Mah seamless at these levels?
PRANAV SANGHAVI answers, I think they are a hold or buy on dips.
Sripad asked, Hi Pranav, how will Jai Corp perform in SEZ sectors in next 1 year ? I can hold for next 3 years. Please trow light on its long terms perspective.
PRANAV SANGHAVI answers, Hi Sripad. The SEZ will take longer than a year to reach a critical level of completion. I think it would take over 3 years for completion. You could hold on to the stock with a 2 to 3 year outlook.
momoiz asked, sir ji, what the stock should take for 6months prospect in f&o, i have loose 2 lakh rupees in last month crashed, so i want ot cover those loses. pls suggest how to cover
PRANAV SANGHAVI answers, Investing in F&O currently is a risky proposition as the markets are very choppy and movements eitherways could be sharp. I would rather that you pick up quality stocks like L&T, RIL, SBI and hold on to them for 3 to 6 month period.
Laila asked, What will be ur top 4 picks from the Realty, Construction sector?
PRANAV SANGHAVI answers, I would look at DLF, Unitech, Piramal Land and an indirect stock which invests in projects, IDFC.
khan asked, Hi Pranav, I have bought 23 at DLF, 30 at GMR Infra, 10 at Nestle, 10 at Tata chemicals, 10 at Infosys, 20 at Rcom. After i bought, all the share prices were failling down. Will it bounce back in 2 to 3 month times. Should i hold it or book loss? Thanks
PRANAV SANGHAVI answers, Yes don't panic. All the stocks you mention are quality frontline stocks and surely could be held on to. Do not book a loss.
sk asked, Hi Pranav, i purchased Tata steel at 880 Rs. What do you suggest for this scrip in long term.?
PRANAV SANGHAVI answers, Hi SK, I think once they manage to reduce their debt burden over a couple of years and Corus' results start reflecting in the Balance Sheet Tata Steel should give decent returns over the next few years.
Rusi asked, Sir when is the OnMobile IPO listing? Please comment on the same? When will Rel Power see levels above 400? Thanks.
PRANAV SANGHAVI answers, Having seen the fate of Rel Power most of the listings over the next few weeks may not fair too well as in they may not list at lofty premiums as new companies had done all of last year.
vettri asked, IOC,GAIL,SAIL,POWER GRID,RPL,RPOWER,TATA MOTORS,BOB,OBC - My protofoilio . SUGGEST ME WHICH ONE HOLD/SELL
PRANAV SANGHAVI answers, Hold on to all. All are good picks. But you will have to hold for long term.
giddaluru asked, I have Jindal Steel and Power @ rate of 2450 and Reliance Communicate @ rate of 662. what strategy should i follow now ?? Do you suggest to wait ??
PRANAV SANGHAVI answers, Yes if you can buy further at lower levels buy some more to average out and hold on for 6 to 12 months.
Rusi asked, Can we get into JP ASSO, Idea Cellular,Rel Infra at these levels?
PRANAV SANGHAVI answers, You could look at them.
dpkpremchandani asked, it is a safe time to enter in market
PRANAV SANGHAVI answers, One could look at buying in parts on dips. But only in quality frontline stocks and not trading double digit liquid stocks for the short term.
money asked, what is the future of Burnpur Cement?
PRANAV SANGHAVI answers, Going by the data on the first day where over 150 million shares were traded and only 5% resulted in delivery along with a price jump of over 4 times, I would rather stay away from the stock even though it may give returns in the short term.
johns asked, hi pranav. I hold 2000 shares of TFCIL @ 30. whts prospect of this short term.will it touch 50 again?
PRANAV SANGHAVI answers, It could but be prepared to hold for 6 to 12
months.
Rusi asked, What will be your top picks from the textile and fertilizer sectors?
PRANAV SANGHAVI answers, I would like Raymond and Arvind mills and GSFC and Nagarjuna Fert.
sampar asked, what is the future of Reliance Power ,HDFC and Hanung toys
PRANAV SANGHAVI answers, HDFC is surely a strong hold. Rel Power as i have mentioned earlier you will have to hold on for aatleast over a year to see soem returns. Hanung TOys I don't follow. It is relatively a newer stock as it's IPO was within a year. So I would give Hanung a few more quarters to prove itself.
Unmesh asked, Dear Pranav, I have 12 L&T @ 3846, 3 Adlabs Films @ 941, 2 Jindal steel @ 2528 and 10 Patel Engineering @ 741. What are the long term prospects?
PRANAV SANGHAVI answers, Excellent. Hold on to L&T, Adlabs and Jindal. Patel Engineering I don't follow so won't be able to help you.
khan asked, Hi Pranav, I started my first investment in the month of Jan 2008. After i bought some shares in ONGC, Tata chemicals, Nestle, the share pricess are falling down. Since some of the good companies shares are falling down, i started to put more money to purchase those front line stocks. Now the situaation is very bad. As i am a new invester, what should i do now?. Thanks a lot.
PRANAV SANGHAVI answers, hold on to your investments and wiat. As you said investor you need to stay invested with a longer term outlook. Don't look at your stocks with just one month outlook.
biru asked, Can anyone have more than one demat accounts?
PRANAV SANGHAVI answers, You can have but they need to be declared through your income tax returns.
kshitij asked, I brought Reliance Communication 25 shares at Rs.610, Ispat 80 shares at Rs.80...should I sell ...
PRANAV SANGHAVI answers, Hold on to R Com. Ispat I don't know when it would touch those levels. As I am not that bullish on the company.
Pallan asked, Good evening Pranav. I am holding Guj NRE Coke @ 35/-, TTML @ 21, RNRL @ 41, MRPL @ 41, Unitech @ 235/-, Rel.com @ 535/-, Petronet LNG @ 106/- BRPL @ 89 and Nag. Fet @ 43.5. Please advise me which stock can be held for the long term and which ones to be exit?
PRANAV SANGHAVI answers, Guj NRE, MRPL, Unitech, RCom, Petronet, and Nag Fert could surely be held for the long term.
mkb asked, Hi Pranav! Pl. suggest RPL @ 163, SRF ltd. @ 195 and Rel. Power @ 350 is good to hold?
PRANAV SANGHAVI answers, RPL and Rel Power you will have to hold for a very long time of around 1 to 2 years to see decent returns. SRF can be held.
lob asked, What is your take on SUZLON, CITYUNION BANK AND DR.REDDY AND TCS. I am losing on all except TCS. Shall I exit booking loss ?
PRANAV SANGHAVI answers, I think the banks may give a short rally if the RBI does indeed reduce its rates in the near future. SUzlon and Dr. Reddy can surely be held on to.
tade asked, ESCORT@87 , idbi @110 ,powfin @ 169 , gujamb @ 112 - please suggest hold or sell / target
PRANAV SANGHAVI answers, Surely hold on.
shrenik asked, I entered in Powergrid at Rs145 can should I hold or sell it?
PRANAV SANGHAVI answers, Hold on witha 6 month time frame atleast.
vgvengat asked, I've purchased reliance natural power 100 shares at 14 and 200 shares at 165. Now it is dipping. Actually i purchased it for long term like 5 to 10 years. Is that make sense...?
PRANAV SANGHAVI answers, If you have bought with a 5 year outlook it does make sense. Only the ongoing case which the company is fighting with RIL for GAs reserves will decide the outcome of RNRL.
anand asked, Dear Sir i am a small investor and having hcc @227 300 share, hfcl 250 @56, ntpc 50 @210, steel exchange 100 @105 ,rpower 50 @ 363. Sie Please advise
PRANAV SANGHAVI answers, HCC, NTPC could surely be held on to. HFCL you could book profits and exit. Steel Exchagne I don't follow so won't be able to help you on that.
Winner asked, Sir Please comment on the present scenario of the markets. How long will it take to move upside from here?
PRANAV SANGHAVI answers, I have given a similar reply in my earlier replies please refer. Thank you.
nirmal asked, I am heavily invested in Gujarat NRE Coke - what is the long term outlook ?
PRANAV SANGHAVI answers, Positive. You could hold on with a 6 to 12 month outlook to see profits.
lob asked, Can I buy ICICI bank and NTPC at current levels say ICICI bank at 1200 and NTPC 200 ?
PRANAV SANGHAVI answers, Yes you can surely buy both the stocks. I'd rather buy on days of dips like day before yesterday rther than a rise in the markets like today.
Dee asked, Is M and M a good bet?
PRANAV SANGHAVI answers, It is a decent bet in the auto sector. This budget everyone is expecting to see a more populous budget thereby benefitting the farmers. This could benefit M&M to an extent.
RAKESH asked, I HAVE 25 SHARE OF PUNJLOYD @469,SHOUL I HOLD OR SHOULD AVERAGE IT.
PRANAV SANGHAVI answers, You could average at lower levels and hold on.
rals13 asked, what is the future of Reliance Petro in the next one year???
PRANAV SANGHAVI answers, If they do commence commercial production in March 2009 as it has been said then the stock could see some further appreciation.
rals13 asked, what is the upside in Reliance Capital in the next one year
PRANAV SANGHAVI answers, You could see a 20 to 30% return on the stock.
Winner asked, Please give your Top 2 picks from Oil drill & exp & Refineries sectors?
PRANAV SANGHAVI answers, I would look at ONGC and Aban Lloyd.
rals13 asked, what do you think of GMR infra in the next one year??
PRANAV SANGHAVI answers, Even though GMR is trading at a very high PE multiple I think once it start completing its projects and booking revenues the stock could surely see higher levels.
ravik asked, I am holding 200 shares of Reliance Power i am bitterly confused please advise
PRANAV SANGHAVI answers, You are one amongst many Ravi. I have mentioned in my earlier replies as to what could be expected, please refer.
mkb asked, Dear Pranav! Should I go for Hexaware and Geometric at current level for 2 years?
PRANAV SANGHAVI answers, I would rather look at other frontline quality stocks.
sandeep asked, hi i have 40 share of TCS at 1003 price wht i do sale/hold
PRANAV SANGHAVI answers, You could hold on and sell at a profit within 6 months.
UPENDRA asked, Dear Pranav I purchased polaris@100/- shall i hold or sell?
PRANAV SANGHAVI answers, You could hold on to the stock despite the IT sector not doing so great Polaris should fare well.
vineet asked, what is the future of bharti airtel ? I bought@ 978/-
PRANAV SANGHAVI answers, You have got in at higher levels but I think within 6 months you should see a profit.
Larsen asked, Very Good Afternoon Pranav, What is going to be Market trend upto FEB 08.If Market falls then what is support base? When should start investment and in which stocks with what duration?
PRANAV SANGHAVI answers, I think the previous lows would be very strong supports and it looks difficult that the markets will test those levels. I would look at frontline stocks and buy in parts on dips.
rahul asked, I have BHEL at 2591. Should I hold? When can I see the profit?
PRANAV SANGHAVI answers, You can surely hold on to BHEL and buy more at current levels to average out. I think they should continue delivering growth in their results in both topline and bottomline. You could see profits within 6 months.
Winner asked, What are best picks from the TATA group?
PRANAV SANGHAVI answers, I would look at TISCO, TELCO, Tata Investment Corp, TCI etc.
raju asked, which is best stock to buy below 100/-
PRANAV SANGHAVI answers, I like Piramal Land. It has quality promoters and quality land bank.
sat asked, Please advice on IFCI and Tech Mahindra. I bought IFCI at Rs. 79 and Tech Maindra at Rs. 1850 and Rs. 800. Should I sell and book my profits?
PRANAV SANGHAVI answers, You could see your level on IFCI soon. It is a speculative play and you could book proftis. Tech Mahindra is a fundamentally strong scrip but facing a similar problem as the other tech stocks of a depreciating ruppee last year. This year could be different and you could see the stock beating the other tech stocks as a lot of its revenues are europe based and not US based.
vr asked, i m long term investor. my time horizon is 8-10 yrs. what could expect for RPL,NTPC,Reliance Power,ITC,TTML,Jai Corp suggest me good stock for long term
PRANAV SANGHAVI answers, I think all the stocks you mention should appreciate handsomely over that time frame.
PRANAV SANGHAVI says, Well it has been great chatting with you people and hope to see you'll next week. I regret not having been able to reply to all queries. Bye for now.
Chat with Pranav every Wednesday at 4 pm
(Due to circumstances beyond our control, the date and time of chat may change)