Stocks that can give you good returns in 1-2 yrs

The Sensex opened the week in the positive region. On Monday it ended on a high note, with a gain of 400 points. On Tuesday it ended down, and on Wednesday it has remained extremely volatile.

Under the circumstances, what strategy should the investors 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 on Wednesday, market expert Pranav Sanghavi replied to many such readers' queries. Here is the transcript:

PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Let's begin.

ravi asked, what would be best bid to buy SBI at current levels..
PRANAV SANGHAVI answers, at 2008-04-09 15:52:58I would look at SBI with a 1 to 2 year outlook but only buy on major corrections. Right now the markets still look a bit weak. With the inflation numbers going high we may see the government make desperate attempts to curb inflation and raising interest rates and CRR ratio's could be their best bet. In that scenario the banks may not perform as well as people had expected them to.

raju asked, i have larsen 130 nos what i should do should i hold or sell and when
PRANAV SANGHAVI answers, You can surely hold and not sell in panic. Everyday there's only good news about L&T in the papers. They just won a multimillion dollar contract. Fundamentally it is a strong stock and I would continue to hold.

Riyas asked, Hi Pranav,I am holding the following shares. Please advice me whether i will get profit if i hold it for 3 - 5 months duration? Some of shares i bought it when the market was in peak values, so i also did average during the market correction. 10 Bajaj auto@760,5 BHEL@1900, 10 Canara Bank@280, 28 DLF@ 850, 30 GMR Infras@180, 5 HDIL@ 820, 20 ICICI Bank @ 920, 2 ONGC @1380, 6 REL @ 1400, 23 RCOM @ 614, 17 SBI @1940, 10 Suzlon@286, 10 Tata Chemicals @ 384.
PRANAV SANGHAVI answers, Most of the rates you have got at in-between rates, not at the lofty highs of 21,500 levels and not the lows of 15,000. So I would say if you held them for 6 to 12 months, you should see some of your holdings make profits.

Sameer asked, Hi Pranav, What is the future of canara bank, BHEL, HDIL, Nestle. Can we expect bullish in the future? Thanks.
PRANAV SANGHAVI answers, Bhel is a quality stock and is getting hammered because of the slightly weaker than expected quarterly results. I would still hold on and not get out. Nestle is another stocks I would hold on to.

Patrina asked, Can you give me 5 good stocks name in large cap, mid cap, small cap category which would return handsome return in 1 to 2 years. Cheers.
PRANAV SANGHAVI answers, I would look at stocks like, L&T, SBI, RIL, NTPC, Indian Hotels, IDFC, DLF.

NIEIWEN asked, HI, How are you? I have IFCI and Decolight.Shall I hold these shares?
PRANAV SANGHAVI answers, I would not look at holding either with a long term outlook. I would rather switch to a quality frontline stock.

Shannon asked, I bought 17 SBI@1940, and 28 DLF@850, since those values are down these days, can i buy more at the current level to average. Please advice.
PRANAV SANGHAVI answers, If you are a long term investor you could surley look at acquiring small quantities on the days the markets are down by over 2.5 to 3%.

Manoj asked, Hi there, What is the future of REL and Rajesh export? Are you bullish on this?
PRANAV SANGHAVI answers, No I am not. If you study the balance sheet of Rajesh Exports it is pretty evident they earn basically a spread between the foreign interest rates and local interest rates. They have deposits in bank in India equal or close to their total turnover.

ankur asked, hi i have a DLF share which i buyed in a 630/- now im in a confusion what to do because i borrowed the money from share broker plz advise me!!!1
PRANAV SANGHAVI answers, See DLF as most other realty stocks has got a major battering and corrected by over 50%. I believe that real estate prices will correct but our economy has certainly not taken a complete U turn. So the realty stocks should recover in some time.

Kaveri asked, I don't have shares but I have invested in Reliance growth mutual fund 10,000/ and HSBC advantage india fund 10,000/. I also like buy some shares now as the rates have come down but I beleive that the market rates for shares will increase. What type of shares should I buy???Shall I buy through a brokerage firm??? I don't know anything about buying shares???help me
PRANAV SANGHAVI answers, Mutual Funds are a better way to invest into the markets if you do not have time to devote to it. In the January correction a lot of retail direct investors have lost a lot of money where as most of the Mutual Funds NAV's went down marginally lesser in comparision.

Manoj asked, When there is a big correction in the sensex, is it possible to predict whether the market will still go down further so that we will wait until the bottom has reached out. What is the support level for sensex? Thanks
PRANAV SANGHAVI answers, No one can predict with accuracy or they would be billionnaires. A lot of factors affect the markets. So finding a bottom is virtually impossible. That is why I believe in buying in small lots on very major dip.

bnpandit asked, HI pranav I have Punjlloyd@330, Suzlon@360, GMR Infra@180 Should i hold it or sell i can hold for 6months to 1 year
PRANAV SANGHAVI answers, All three stocks are quality stocks but only in the long term. In the short term with the markets looking weak these stocks also will remain weak. If you can take a outlook for 1 to 2 years then you should see returns on your stocks.

Kanunga asked, Hi Pranav, Is there still downtrend left in the market, if yes at what point we can enter in the market. Thanks in advance
PRANAV SANGHAVI answers, Yes to me the markets still look weak. We could see a new low before we actually consolidate and move up. If all things turn positive then we could see the previous highs some time end of this year. But keeping inflation in check and interest rates low shall be a challenge for the government and will affect the markets.

samar asked, Hi pranav good evening.. can u please advice us whther we shud buy concor as it is going to give bonus in next week.. and when we can sell it to book decent profit.
PRANAV SANGHAVI answers, Normally, a stocks price always adjusts lower to match the ratio of the bonus once it goes ex-bonus on the exchange. So you will make a decent profit if you hold on to the stock for some time and let the price move up post the downward revision after the bonus.

amit asked, should i buy IT sector as the dollar vis the rupee is 39/-. could IT be the next rally
PRANAV SANGHAVI answers, Despite the short term rally, I would wiat for the Infy results due out next weak and see what guidance they are giving for the coming year and then make a call on whether IT stocks should be looked at or not.

Mayur asked, Hello Pranav,i have been invested in IVRCL Infrasturctures for almost 7 years now. i have got good returns. Can u tel whether its a hold , or sell with a long term perspective.
PRANAV SANGHAVI answers, Government has given an impetus to infrastructure spending in the Budget. So most infrastructure stocks should benefit form the same. With a long term perspective you could surely look at the stock.

ravi asked, now the market seems to be picking up very very slowly, do you expect the sensex to have a great fall once again.. or it would carry further from here...
PRANAV SANGHAVI answers, Markets do look to remain range bound and news sensitive. A correction could emerge if there is any negative news from US or other global markets or even back home.

k asked, hi pranav, i have essar oil could u please advise to sell or buy
PRANAV SANGHAVI answers, I would advise to hold.

lalmano asked, Which sector will be good to buy for short term profit making?
PRANAV SANGHAVI answers, You could look at infrastructure and heavy engineering.

pkverma asked, what to do with ispat for 6 months?
PRANAV SANGHAVI answers, I don't think it would give you fancy returns in 6 months. You will have to hold it for much longer.

susantaguru asked, Hi Pranav, Kindly comment on my portfolio: BHEL@1875, JPASSOCIATE@234, NTPC@193, RPL@159, SBI@1891, POWERGRID@92, TATASTEEL@715, UNITECH@335, HFCL@21, ISPAT@34. Overall loss now around 5%. Thanks & Regards
PRANAV SANGHAVI answers, You have a decent mix of holdings. I would surely hold on to the stocks and you will surely see returns in 6 to 12 months.

satish asked, I have 2000 shares of Ashok Leyland @50 and Ruchi Soya 2000 @95. Pl. advice to hold or sales at current price.
PRANAV SANGHAVI answers, Despite weak market conditions Ashok Ley has been outperforming. I would hold on to the stock surely. Ruchi I don't follow so will notbe able to help you.

Mahesh asked, What is the price target of Reliance & L&T for next 6 months??
PRANAV SANGHAVI answers, I see both up by atleast 20% if not more.

vani asked, whats u r take on indian economy as a whole
PRANAV SANGHAVI answers, Like I mentioned earlier, I don't think our economy has taken a complete U turn. We still look to grow at ov er 7%. But keeping inflation under control is a crucial factor. This being an election year for the government so that making it that much more vital for them. I would say we could seea slow down in growth but net net we should still be positive over the next 1-2 years.

joy asked, i want to invest in capital market with 10,000.what should i buy?
PRANAV SANGHAVI answers, Mutual Funds.

rak asked, Hello, this is rakesh from Dubai. I am holding 95 GMR at an avg of 145, 40 RPL at 170, 15 NTPC at 197. Please give me your opinion regarding my portfolio and the future regarding these stocks.
PRANAV SANGHAVI answers, I think you can surely hold on to your stocks and not panic. You have quality stocks and you will see decent returns over 6 to 12 months.

Novice asked, Hi Pranav, Let'u say you have 3 lakhs amount. when you invest in MF, what kind of portfolio you would like to have in MF for good returns for from 3 to 5 years?
PRANAV SANGHAVI answers, I would look at a mix of Growth Funds and Large Cap Diversified Funds based on your risk appetite.

pooja asked, hello sir, i have 100 shares of orchid chemicals @247.pls suggest how much the stock could move in 6 months prospective.
PRANAV SANGHAVI answers, Orchid has been in the news recently due to the creeping acquisition made by the Ranbaxy Group in the stock. Orchid is a quality stock available at decent discount to it's true valuation and it also is a consistent performer. So I would surely hold on to the stock and not sell.

ksash asked, Can i purchase L&T, BHEL, JP associates and DLF at the current levels, with a horizon of 1 year?
PRANAV SANGHAVI answers, Yes you could look at them but buy on days of corrections and not on rallies.

mk asked, 195 idfc at an avg of 180, 290 powergrid at avg of 100, should i add more to this?
PRANAV SANGHAVI answers, You could add to both the stocks as I feel from the midcap stocks these should perform well.

rajesh asked, what are some of the good beverage stocks with 5-6 years horizon
PRANAV SANGHAVI answers, I would surely look at United Spirits. Also some other their other group companies like UB Holdings etc. You could also look at Champagne India.

ss asked, what is your take on Indiabulls Financials?
PRANAV SANGHAVI answers, I think all the securities stocks have suffered due to bad market conditions and absolute dissappearance of volumes in the markets. People are anticipating huge drop in income due to the lower volumes in the markets. On some days currently we see only 15 to 20% of the volumes of November and December last year. And INdiabulls FInancial is no exception.

jainpkj asked, what is the future of bharat forge
PRANAV SANGHAVI answers, I would surely hold on to the stock. I am pretty bullish on the stock.

Ameet asked, Very very short term target (1-2) weeks on Indiabulls real estate
PRANAV SANGHAVI answers, In the short term the real estate finrms will not perform well. Over a longer term they should deliver decent profits.

asx asked, Hi pranav, bought relpower @430, what's d right note to do with this stock?
PRANAV SANGHAVI answers, Nothing much that you could do with the stock. You should wiat for the bonus and then take a call whether you wish to sell it or hold on.

VIPIN asked, I have buy 100 stock of ITC @ Rs 232 .Can I hold . My timing duration for this stock is 2month
PRANAV SANGHAVI answers, I think the only sector to have outperformed the indices this past couple of months is the FMCG. ITC being no exception. I would hold on to the stock. It is a fundamentally strong stock and looks to give decent results for the last quarter.

Prateek asked, I have 100 shares of DLF @ 800. What shall i do it is trading @ 600 now.
PRANAV SANGHAVI answers, You will have to hold on to the stock for atleast 6 to 12 months to see decent returns.

gautam asked, can i buy UNITECH & HDFC at current levels
PRANAV SANGHAVI answers, You could surely look at them on every dip but only in parts.

ajay asked, sir..how is GMRInfra, BHEL and indiabull security? I have lost money in last 3 months and currently sitiing out of market..is this right approach to wait for marmekt to settel down?
PRANAV SANGHAVI answers, GMR and BHEL you can surely hold on to.

paresh asked, Hello what about tata power and reliance power
PRANAV SANGHAVI answers, I think the power sector should outperform the markets over the next 12 months. So I would surely hold on.

as asked, what are the prospects of hotel leela
PRANAV SANGHAVI answers, Currently all HOtel stocks are beaten down but I would hold on to the stock.

ajay asked, sir..what approach we should follow now?should be start buying or just waitb for marjet to settel down?
PRANAV SANGHAVI answers, If you are a long term investor you could start buying small quantities on every dip. In the short term the markets do look weak and could only move up beyond a consolidation phase. This could take 2 to 6 months. Depending on global and local factors.

asx asked, what to do if investment in franklin templeton index flexi cap growth fund throug sip for last 12 months completed?
PRANAV SANGHAVI answers, You can renew your SIP or pull out the funds.

savi asked, I want to invest few thousands, can u guide me which stock i should buy
PRANAV SANGHAVI answers, Look at the large cap frontline quality stocks. If you do not have thte time to study the markets then you could invest through Mutual Funds or ULIPS.

Mani asked, hi Pranav Which sectors are to be good this year?
PRANAV SANGHAVI answers, I think Infrastructure should perform well. I like the pharma and power sector also.

atul asked, I have ICICI Bank at rs 1350. can I expect the Break even point price in next 2 month
PRANAV SANGHAVI answers, You could see that price over the next 6 months.

PONNAN asked, WHICH ONE AMOUNG THE BEST STOCK TO BUY L/T, BHEL,HDFC,ICICI,BMEL
PRANAV SANGHAVI answers, I would look at L&T.

chetanbabu asked, Hi, what are your views on Hindalco, HPCL? Currently HPCL is below its book value.
PRANAV SANGHAVI answers, Petrol Companies have always quoted below their true value and they never have been able to get high PE ratios. With the crude rising and local prices not being hiked by the government there is a good chance that they remain under performaers.

sohrab asked, Hi. whats your view on reliance capital and reliance petroleum
PRANAV SANGHAVI answers, RPL has to be looked at witha 1 to 2 year outlook. Rel Cap also could be looked at with 6 to 12 month outlook.

santhosh asked, what is the future of dlf,unitech,indian hotels,ranbaxy,financial technologies,ntpc,prajpls answer pranav
PRANAV SANGHAVI answers, I like all the stocks you have mentioned. I would continue holding the same or look at buying into the same at lower levels.

1234 asked, Sir , i have SBI@1873 should i hold or book the loss..in one year perspective
PRANAV SANGHAVI answers, Despite the negative news on banks you could hold on to SBI if you have a 1 year perspective.

mp asked, Hi Pranav, Is GRASIM a good buy at this stage? Thanks
PRANAV SANGHAVI answers, Yes you could look at accumalating Grasim in smaller lots on every corrective day.

sella asked, Good Evening Pranav,Shall i accumulate the Pricol,Ashok leyland,Hotel leela,ITC,India Hotels
PRANAV SANGHAVI answers, I like INdian Hotels at these levels. You could surely accumalate the same. Ashok and ITC have already run up over the past few weeks so I would not get inot them at these levels but wait for them to correct.

pKvijay asked, hello pranav, I have infosys @ 1600 and IDBI @ 120, could I hold on with one year horizon, could I add more of these?
PRANAV SANGHAVI answers, For INfosys I would wait for their guidance for the coming year at the time of their results next week. IDBI's stock price as most banks are under pressure due to the rumor of a possibility of a hike in CRR and interest rates.

PRANAV SANGHAVI says, Well it has been great chatting with you all. It's time for me to leave. Hope to catch you'll next week and bye for now.
PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Let's begin.

ravi asked, what would be best bid to buy SBI at current levels..
PRANAV SANGHAVI answers, at 2008-04-09 15:52:58I would look at SBI with a 1 to 2 year outlook but only buy on major corrections. Right now the markets still look a bit weak. With the inflation numbers going high we may see the government make desperate attempts to curb inflation and raising interest rates and CRR ratio's could be their best bet. In that scenario the banks may not perform as well as people had expected them to.

raju asked, i have larsen 130 nos what i should do should i hold or sell and when
PRANAV SANGHAVI answers, You can surely hold and not sell in panic. Everyday there's only good news about L&T in the papers. They just won a multimillion dollar contract. Fundamentally it is a strong stock and I would continue to hold.

Riyas asked, Hi Pranav,I am holding the following shares. Please advice me whether i will get profit if i hold it for 3 - 5 months duration? Some of shares i bought it when the market was in peak values, so i also did average during the market correction. 10 Bajaj auto@760,5 BHEL@1900, 10 Canara Bank@280, 28 DLF@ 850, 30 GMR Infras@180, 5 HDIL@ 820, 20 ICICI Bank @ 920, 2 ONGC @1380, 6 REL @ 1400, 23 RCOM @ 614, 17 SBI @1940, 10 Suzlon@286, 10 Tata Chemicals @ 384.
PRANAV SANGHAVI answers, Most of the rates you have got in a inbetween rates not at the lofty highs of 21,500 levels and not the lows of 15,000. So I would say if you held them for 6 to 12 months, you should see some of your holdings make profits.

Sameer asked, Hi Pranav, What is the future of canara bank, BHEL, HDIL, Nestle. Can we expect bullish in the future? Thanks.
PRANAV SANGHAVI answers, Bhel is a quality stock and is getting hammered because of the slightly weaker than expected quarterly results. I would still hold on and not get out. Nestle is another stocks I would hold on to.