Indian markets achieved yet another milestone on September 26. It opened positive and within seconds, hit a new high, it crossed 17,000, only 5 days of trading since it crossed 16,000.
Did you make gains while the Sensex soared?
How do you plan to consolidate your gains? 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?
In an hour-long chat on rediff.com, market expert Pranav Sanghavi answered many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon every one and welcome to the chat on yet another historic day. Let's begin.
RAJIV asked, IS IT SAFE TO INVIEST NOW IN THE MARKET SPECIALLY IN RPL AND RNRL OR WE WOULD SEEE CORRECTION IN THE MARKET SOON.
PRANAV SANGHAVI answers, at 2007-10-03 12:04:03I think a smallish correction is due anytime soon. As I had said earlier we have moved too much too soon.It is only because of the funds literally pouring in from overseas that we are witnessing such euphoria.
venky asked, could you please let me know what are best stocks tp pick now. I am looking for long term investment, I cn hold more 3 years.
PRANAV SANGHAVI answers, I would still look at the frontline stocks like RIL, SBI, L&T and even DLF. But not at this all time high index but during a correction.
vinay asked, i am holding IFCI 250 shares bought at 100/- each ..how long is it acceptable to hold it...
PRANAV SANGHAVI answers, You have got in at extremely high levels. They are meeting the potential investors today and narrow down the bidders. But I guess in about three months time things should be clear and price could move up but slightly. As what valuation the company receives has to be seen.
Real asked, Hi, is it the right time to invest in MFs?
PRANAV SANGHAVI answers, I would wait for the corrections and let the NAV's move down a bit.
big_bull asked, What is your call on Infosys? Hold or sell ?
PRANAV SANGHAVI answers, Hold but for a longer term.
sam123 asked, Which IT stocks we can go on contraian buy for the prospective of 6-8 months. Whats the future of sugar stock shall we come out of this or in 6-8 months we can hope for sweet returns on these.
PRANAV SANGHAVI answers, IT stocks will have to be looked at with a longer term of 12 to 18 months at least. You could look at TCS, Wipro, INFY, Tech mahindra etc.
PK asked, Sir, Good A/N. I am holding HDFC Equity, DSLML Top 100, Fidelity International Opportunity, Reliance Div. Power. Kindly advise me what to hold and what to sell
PRANAV SANGHAVI answers, I think you have a decent mix of MF's. You could convert the international opp fund into a local growth fund as our markets look to outperform most foreign markets.
HarryBhai asked, What do u think abt MIRC Electronics? Is it worth to pick it up at this levels?
PRANAV SANGHAVI answers, You could look at it with a 6 month outlook but wait for the correction.
PK asked, What's your opinion on Aptech, Indiabulls Real Estate, Parasvnath? I am holding these
PRANAV SANGHAVI answers, I think Aptech will not be affected by the Ruppee appreciation factor like most other tech companies. As its business is focussed within India. Its also on a expansion path and one could hold it. India Bulls you will need to hold for another 12 to 18 months for the fruition of their developmentt plans. I would look at DLF or Unitech instead of Parsvnath.
abhishek asked, i have purchase aurobindo pharma 20 share at price of 620 now its current price is 605 so advise me i have to stay or sell
PRANAV SANGHAVI answers, You could hold on.
RAJIB asked, Sir, I have 25 Here Honda @ Rs. 741/- holding since last 6 months. I am a long term investor, pl. advise!!!!!
PRANAV SANGHAVI answers, HH is amongst the top two players of the two wheeler industry. I would hold on. Once the interest rates move downwards in our economy the company will give even better performance.
bhaskar asked, which share is give more benefit for delivary ?
PRANAV SANGHAVI answers, Most of the frontline stocks like RIL, L&T, SBI etc. But buy when the markets correct.
gaurav asked, Sir, I want to buy RPL. whether it will touch 135-140 levels again..
PRANAV SANGHAVI answers, If the market corrects one can see those levels.
RAJIB asked, Sir, I have 200 ITC @ Rs. 140/- holding since 2005. The same was not outperformed. Kindly advise
PRANAV SANGHAVI answers, You could book partial profits at Rs.190 levels and then get in at lower levels if the market corrects.
Bagdi ji asked, Dear Pranav ji, When there will be correction in the market or the correction is expexcted?
PRANAV SANGHAVI answers, I have been saying it from the last two weeks but its not come. The market is flooded with liquidity and its moved up very fast. I think itshould correct before the results as I expect decentresults from the companies for the Sep Qtr. which could make the markets rally again.
flexcube asked, Rain calcining, Moschip, Accel Frontline.. Your take?
PRANAV SANGHAVI answers, Book profits and get in during the corrections as the mid cap stocks get hit badly during corrections and they take that much more time to come up.
RAJIB asked, Your view on BARTRONIC INDIA please
PRANAV SANGHAVI answers, It is in a growth industry. You could hold on. But if you are looking to get in then I suggest when the market corrects.
Meghraj asked, Dear Sir Tell me about Unitech, SELMCL, HFCL, Spentax, Brels Infote, Nandan Exim, RPL, GMRINFRA,
PRANAV SANGHAVI answers, Unitech, Rpl and GMR could be held on to.
Raja asked, Good morning Pranav, what are your views on McLeod Russel?
PRANAV SANGHAVI answers, Good afternoon Raja. I think the tea sector is a cyclical one and Mcleod will be range bound and may not outperform the markets in the near term. I would book proifits and switch.
abhishek asked, i have purchase jindal saw 25 share at price of 658 now its current price is 645 and please advise me what is the target for three month
PRANAV SANGHAVI answers, You could continue to hold on. It may correct slightly but in the longer term it looks good.
asha asked, Sir I have 1500 units of SBI magnum bluchip fund. Why this fund is not performing that well? Shall I hold or sell it?
PRANAV SANGHAVI answers, I would need to look at the portfolio mix beofre I advise you on it.
Rajinder asked, I have Sasken Commu. 45 shares appox price 345/=,should I hold on ????
PRANAV SANGHAVI answers, I would book profits and exit.
Shamim asked, Sir, I have 25 shares of dhampur sugar since frm 2006 @ 108, i m a long term investor, pleasee advice mee
PRANAV SANGHAVI answers, I don't think in the near term the sugar stocks could do that well. Despite the governmental directions to allow sugar manufacturers to make Ethanol directly from sugar cane they may take time to put up the plants.
PK asked, Is it advisable to book some profit now and then buy in dips.....
PRANAV SANGHAVI answers, Yes.
rvcat asked, Hi P[ranav-3 stocks that i can buy now and keep for 5 yrs?
PRANAV SANGHAVI answers, I have mentioned them in this chat earlier please refer.
uma asked, Hello Pranav, What is your take on Yes Bank, NTPC, Hindustan construction and Alok Ind ???
PRANAV SANGHAVI answers, Yes Bank, NTPC, And HCC can surely be held. Alok I would switch.
Manibag asked, Dear Pranav ji, How foar this bullish trend will last, today almost 500+ is the market
PRANAV SANGHAVI answers, I think the Indian bull market could continue for another 3 to 4 years atleast. I would not be perturbed by corrections like the one we witnessed last couple of months. You can see how fast we have moved back up.
ashwin asked, Hi pranav...i dont mean to be rude....but all you "Experts" yourself dont know where the markets could move towards. You guys' guesses are as good as mine. Just becuz markets move up....everyone expects a correction and u guys reflect the same thoughts in these chats. But markets are working the other way??
PRANAV SANGHAVI answers, I understand where you are coming from. But I have been in the markets since 1991 and I have witnessed all the three major bullruns during this time. if you follow my cahts from last year and compare it with the SENSEX performance, I think it would have helped you rather than made you lose money. But still no one can predict how a market will perform and call correctly at that or everyone would be Bill Gates.
joe asked, wht is ur opinion about global mutual funds, eg tata global infrastructure?
PRANAV SANGHAVI answers, I would rather look at locally focussed funds as I am pretty confident about our markets performance as compared to foreign markets.
nil asked, pls tell the future of petronet lng and surya chakrya power corp.
PRANAV SANGHAVI answers, Power sector is a growth sector and you could hold on Surya Chakra. Petronet also can be held on to.
nil asked, should i exit piramid retail
PRANAV SANGHAVI answers, They do have large expansion plans for the future. I think you could hold on if you are a long term investor.
viveksinghania asked, hi pranav if you were to suggest one great buy today what would it be
PRANAV SANGHAVI answers, Hi Vivek, it would have to be Financial Technologies. They have a 49% stake in MCX the largest commodity exchange of India which is growing its volumes by leaps and bounds daily. It also has a strong business of its own with good growth prospects. And they are looking at listing MCX soon which would yield substantial value to the parent company.
joe asked, Is there something fishy in the market? BSE gained 500 pts today. It sends alarming bell for me.
PRANAV SANGHAVI answers, I totally agree with you. It is not fishy but the foreing funds flowing into India. The fund inflow figures for this last 3 to 4 weeks are around US$ 3 billion. That is why the Dollar broke the Rs. 40 mark and markets have jumped. But valuations and PE ratios have to catch up sometime soon.
mahipal asked, I have to start the work in share market but my knowledge in zero. how can i start, Pleae give the advise.
PRANAV SANGHAVI answers, I would suggest you take on training courses offered by NSE and BSE. Then consult a broker and discuss your goals for investing in the stock market. And then begin.
joe asked, When the IPO of Kouton's be listed ? any view on that IPO
PRANAV SANGHAVI answers, I think it has set up over 90 stores and is in the fast growing retail segment. I think the stock is decently priced and could yeild decent returns to investors over a longer term.
Ravish asked, Hi Pranav, can u tell me is it right time to enter in market as market is abt to touch 18k.I am having some scripts like RPL,IDFC,IDBI,Punj Lyods.should i book profit n exit.I am short term investor.
PRANAV SANGHAVI answers, If you are a short term investor and if you are making profits of 15 to 30% in a single month, you should book profits and wait for better prices to get in.
anupam asked, is it the right time to invest in stocks
PRANAV SANGHAVI answers, Buy at the time of corrections. Right now the market is at its all time high.
Manav asked, Are you related to L.K Singhvi who was in IT department and SEBI
PRANAV SANGHAVI answers, You can see the difference in the names. I am not related.
Venka asked, H Pranav, Can I buy National Organic Chemical Industries Ltd stocks at this levels? What would be the future of this stock?
PRANAV SANGHAVI answers, It would have to be a speculative buy.
hi asked, Hi, I am a regular investor in MF of Birla Sun Life and SBI Magnum Tax saver funds and I am investing 10000 per month,I want to know how the market will perform in the coming years,will it touch 30000 in next three years ?Lets take after touching some point it will be stable then at that point is there is any benefit to invest money on market specially in MF ,please comment?
PRANAV SANGHAVI answers, If you see the historical performance of Stock Markets over longer terms then it has only been second to property markets. Our markets look to be in a bullish phase for the next 3 to 4 years to come. I think if you are in a largecap diversified fund for that time frame you should yeild decent returns.
raghav asked, target for bata brought at 202 for 3 month
PRANAV SANGHAVI answers, You could see a 15% return over that time frame.
nath asked, wats ur take on kalapataru power transmission longterm
PRANAV SANGHAVI answers, I think it is a good bet. With the power sector needing to grow at over thrice the pace it is growing at Transmission tower companies will only stand to benefit.
Bond asked, Do you think we shoukd book profits for DLF, RelCom? or wait for some more time?
PRANAV SANGHAVI answers, If you are a long term investor then hold on to those stocks. If you are a short term investor you could take some profits and then wait for lower levels to get in again. But both stocks are extremely strong holds.
Venka asked, Hi Pranav, Shall I buy Mind Tree stocks a this level? how do you feel about Hilton Metal Froging shares? Shall I book loss in this metal stocks?
PRANAV SANGHAVI answers, I would not look at Mind Tree right now. Yes I would book a loss and look at other frontline metal stocks.
mathew asked, Hi Pranav, can u tell me the future prospects of 1000 unitsBluebird@ 69.25 & 1000 unitsDhanalakshmi Bank @ 75.50.Shall i hold or sell
PRANAV SANGHAVI answers, I don't follow either of the stocks sorry.
Harry asked, Your view on HOTEL LEELA, SPICE COMM and NTPC? Buy, Hold or sell from Long term perspective?
PRANAV SANGHAVI answers, Definately hold for all three for the long term.
piyush asked, sir i have nifty put 4900 OCt expiry @95. CMP is 45 . what to do with it?
PRANAV SANGHAVI answers, Hold on you may get to cut it at cost if the marekts correct soon.
shyam asked, Hi Pranav, Is it time to book profits in Reliance Ind and DLF as both are trading at their all time highs... Can I enter L&T and Airtel at this juncture
PRANAV SANGHAVI answers, If you are a trader surely. I was expecting DLF to hit Rs 850 levels during March results. It has hit that target in two weeks since I mentioned that. I would wait for the markets to correct at L&T and Airtel are both index heavy stocks and would correct along with the markets.
Atul asked, Hello Pranav, I have 600 shares of ACC. Please suggest if I should hold them or sell them . Incase I hold them pls tell at what level it is expected to go and what level I should sell them.
PRANAV SANGHAVI answers, I am very bullishon the cement sector. I would hold on for sure. I expect the results also to be decent and ACC could outperform the market.
TAPAN asked, I LIKE TO INVEST IN PUNJLLYOD . PLS. ADVISE FOR LONG TERM VIEW.
PRANAV SANGHAVI answers, Get in at corrrection and the stock looks to be a decent player in the real estate segment and looks to perform well in the future. You could surely look at it with a long term perspective.
hiteysh asked, your views on Bk Of maharashtra,centrution bank of punjab>?
PRANAV SANGHAVI answers, I would rather look at the frontline banks like HDFC, ICICI and SBI.
Venka asked, Is it a good bet to get Reliance natural stocks at this level?
PRANAV SANGHAVI answers, I would wait for lower levels. It has moved up too fast.
Ramesh asked, I am holding 5000 shares of STC. What should I do now, Sell or Hold ?
PRANAV SANGHAVI answers, I would hold on as there is some news buzzing about in the stock.
parag asked, do u have any idea abu8 the PRISAM CEMENT? should i hold or sell at 68/-?
PRANAV SANGHAVI answers, You could hold on as the cement sector will perform well.
PRANAV SANGHAVI says, Well it's time for me to leave. Hope to see you'll next week. Bye for now.
Also read:
Sensex reaches new landmark
From 1K to 17K
Chat with Pranav every week
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