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Sensex @ 20k: Listen to the expert
October 29, 2007 16:00 IST
The major drivers of Monday's rally were index heavyweights Larsen and Toubro, Reliance Industries [Get Quote], ICICI
Bank, HDFC Bank [Get Quote] and SBI [Get Quote] among others. Sensex had crossed 19,000 mark on October 16.
Did you make profits while the Sensex scaled dizzying heights? How do you plan to consolidate your gains? What should your investment strategy be now? Should you invest more in the market? Should you consider selling a few stocks? What would be the best stocks to buy, sell or hold at this juncture?
In an hour-long chat on rediff.com on Monday, market expert Pranav Sanghavi answered many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat. We are within striking distance of the magical figure of 20,000. Let's begin.
rajiv asked, regardinf IPO of BARAK VALLEY CEMENTS LIMITED : BARVAL . is the bidding price of 42 will be benificial?
PRANAV SANGHAVI answers, at 2007-10-29 14:37:22I think cement as an industry will perform well over the next 3 to 4 years at least. In the short term there is a rumour of the cement prices being revised downwards so it may affect the listing of this stock mildly adversely.
anu asked, HEllo i have 1000 UCO BANK [Get Quote]@51, shall i hold or sell ?
PRANAV SANGHAVI answers, I would hold.
nilesh asked, r u there sir
PRANAV SANGHAVI answers, Hello Nilesh good afternoon and what is your wuery today.
sand asked, hye. is bombay dyeing worth buying at current levels. thx
PRANAV SANGHAVI answers, They have large expansion plans for real estate development in thelucrative south mumbai area. They are also looking for a strategic partner for their airline where Bom Dye has a substantial holding. So if it gets a decent valuation then the parent will benefit. I would hold on and buy on dips.
asd asked, how to buy ADR/GDRs?
PRANAV SANGHAVI answers, They should see some added activity since they are more easily accessible now for the unregulated FII investors. They will not be allowed to make fresh investments into India.
Manoj asked, Is IFCI worth buying at this level. What is its future
PRANAV SANGHAVI answers, IFCI looked attractive when it corrected to Rs.70 levels. I would now wait for the price that the strategic investor announces which they are ready to pay for the company and then take a call.
RAKESH asked, I WANT TO INVEST IN MARKET NOW IS IT THE RIGHT TIME FOR ME I AM A SMALL INVESTER
PRANAV SANGHAVI answers, The markets are at all time highs so getting in for a first time investor is risky. I would have invested when the markets correct a week ten days back when SEBI announced its plans to restrict unregulated FII investments into India.
Shashikant asked, sir wats a reason behind that markets moving up nd sensex is going to touch 20k
PRANAV SANGHAVI answers, Essentially I think it is excess liquidity. The SEBI has tried to put some brakes on it without much luck in theshort term but RBI may this week in its credit policy announce further liquidity reducing measures.
george asked, what is the expected price trgt for RPL and RNRL...are they good for long term
PRANAV SANGHAVI answers, I thinik RPL is surely a better bet for the long term as RNRL's business plans area still bit grey.
anandanand asked, hello pranav i have invested 50 k in hdfc midcap eqity fund at 10 per unit mid caps are booming but NAV is not increasing can u through light
PRANAV SANGHAVI answers, You will have to see what mix of mid-capstoicks does the fund hold in its portfolio. You could write to the MF and ask for details they are bound to provide the same to you. Maybe the stocks they are holding are notappreciating as fast as other mid-cap stock which you are following.
rakeshks asked, I've 200 Hotel Leela@45, shall I hold or sell?
PRANAV SANGHAVI answers, Surely hold.
Sahdev asked, Hi Pranav, Is Torrent Power [Get Quote] good holding from long term view?
PRANAV SANGHAVI answers, Yes you could look at it as Power sector will see a lot of growth over the next3 to 5 years as India is grossly undper powered country.
maheshp asked, hi, i bought punj lyyod today.should i sell it now.
PRANAV SANGHAVI answers, If you are a short term trader and are making profits you could book some. As if there is any negative news in teh Credit Policy the market may correct very marginally.
rajan asked, Hi! pranave I hold BHEL,LAKSHMI MACHIN WHAT WOULD BE U SUGGEST FOR THAT STOCK!
PRANAV SANGHAVI answers, Hold on to both. I think BHEL is announcing their results today which I think will be fantasticmuchlike L&T.
aravind asked, hi,is it good time to invest in stocks r juz hold on to what i ve. i am a small investor.is it advisable to invest in IT stocks now?coz now a days i dont feel IT stocks r doing good,if i can invest in wat i can invest... thankx
PRANAV SANGHAVI answers, I would hold on to what you have and wiat for a correction for what ever reason it may come.
avita asked, Hi Pranav, Should i hold Hexaware [Get Quote] or book profits given the current situation its just getting into negatives?
PRANAV SANGHAVI answers, Yes you could take some profits off the table and look at reentry at lower levels.
Jogesh asked, I have 30 Tata Power [Get Quote] @1130/-. Should I sell
PRANAV SANGHAVI answers, Hold. If you are a very short term investor you could book some profits other wise anythignn beyond 6 months then hold on surely.
shankar asked, what equity do u recommend to buy at this level
PRANAV SANGHAVI answers, Equity that you will hold for atleast 2 years, as the markets may ride upslightly but they may correct too on any negative news as we saw a week and a half back whern SEBI announced its news related to FII's which sent the market in a lower circuit.
V asked, WHICH STOCK IS GOOD FOR FUTURE
PRANAV SANGHAVI answers, Adding to Shankar's questions even quity which I would holdfor 2 years would be the large cap, frontline growth stocks like L&T, BHEL, Bharti, RIL, DLF etc.
anand asked, hi pranav, good afternoon. What is the position in respect of SRF which I am holding 500 shares bought at 169.50. It has not reached this figure since two months almost. Can u pls. suggest me what to do
PRANAV SANGHAVI answers, The markets are at all timehighs but it has still not touched your acquisition price. I guess you will have to hold on for a little longer to see your price.
Anita asked, should I sell Arvind mills [Get Quote] shares at this rate.
PRANAV SANGHAVI answers, There is some story buzzing in the stock so I owuld hold on to it.
sidharth asked, Hi please advice is this the good time to book pofits before market can come down
PRANAV SANGHAVI answers, You could book partial profits as the markets are roaringahead and valuations left far behind. But the markets could correct.
jitu asked, I have 123 idea cellular. I am a long term investor. This quater result is not so good. Should I sell it or hold.
PRANAV SANGHAVI answers, Yes their this quarter result was below expectations but i would still hold on to the stock.
vikki asked, what is the maximum limit for dlf and power grid within a month?
PRANAV SANGHAVI answers, Both stocks I am still bullish on. DLF seems to have got rerated after their announcement of the large development project with the Karnataka Government. Power Grid also looks like a decent buy at these levelsfor a longer term perspective.
Jogesh asked, I have 50 Hindalco [Get Quote]@120/-. Should I sell
PRANAV SANGHAVI answers, I would hold on. Although it is ametal stock, I think it will deliver value over a longer term.
M asked, WHAT DO YOU THINK OF RNRL AND ZEE NEWS [Get Quote]?
PRANAV SANGHAVI answers, I think they are momentum stocks rather than stocks driven by fundamentals.
cinki asked, I hv taken up SIP of 4k each for FIDELITY EQUITY FUND GROWTH HDFC PRUDENCE FUND GROWTH OPT. DSP ML TIGER FUND GROWTH OPTION HDFC TOP 200 FUND - GROWTH OPT. SBI MAGNUM GLOBAL FUND - GROWTH ICICI SERVICES INDUSTRIES GROWTH RELIANCE GROWTH FUND - GROWTH PLAN PRU. ICICI EMERGING STAR FUND - GROWTH FRANKLIN INDIA OPPORTUNITIES FUND - GROWTH Whata re views on this selection
PRANAV SANGHAVI answers, I think you have made good choices for your SIP investments. I quite like Tiger Fund, HDFC, Templeton etc.
mohit abrol asked, what will be the future of rpl i have bought 200 share@Rs85. what should i do either sell it or buy more
PRANAV SANGHAVI answers, Its has touched 221 today. You are surely sitting on handsome profit. But I would hold on as they are planning to complete their commercial production earlier than targeted before and once it does start you could see much higher prices.
Krisann asked, Hi Pranav, I am new to the marker and just learning the trends. My brother is helping me with suggestions. My question is , as a new comer where would you advise me to invest in and am looking this for short term? Should i go for equity or Mutal funds or IPO or what ? Please suggest
PRANAV SANGHAVI answers, I would advise you to go with MF's. Look for the largecapdiversified MF's. But they will bear a decent return over a longer term and not1 or 2 months.
HITEN asked, WHERE TO INVEST MONEY IN WHICH SHARES ACCORDING TO YOU
PRANAV SANGHAVI answers, Frontline quality stocks which are delivering 20% percent profits on a year on year basis consistently.
GAUTAM asked, WHAT IS THE LONG TERM VIEW OF POWER GRID
PRANAV SANGHAVI answers, I am pretty bullish on the stock even from current levels.
manicham10 asked, Sir I have 1150 sh & 113.00 (Power Grid). What should i do its hold or sell.
PRANAV SANGHAVI answers, Hold.
vineeta asked, Hi!Is it too late to buy Yes Bank [Get Quote]?
PRANAV SANGHAVI answers, I would wait for dips as the second tier stocks get hit more than the frontline at times of corrections.
raj asked, Hi Pranav, Greetings! Currently the way market is functioning is obvious that its not going according to fundamentals. See RPL share got above Rs.200(IPO Rs.60) and still the company is under construction they are expected to start only in 2009. My question, what shld be the guiding forces for this part for investor. Second, market is not responding to any kind of pressure Poltical, Petrol, curb on FII, market is moving strong.. is it done internally
PRANAV SANGHAVI answers, We are witnessing unprecendented amounts of liquidity in our markets and that is ruling the trend currently. The government is worried exactly with the issue that you have raised and are trying their best to curtail the untraceable flows.
Naresh asked, Whats your view on Petronet LNG [Get Quote], I have 100 shares at 82.90, should we hold?
PRANAV SANGHAVI answers, Yes you could hold on.
samkutty asked, i am taken ispat industries rs.30/- can i sell today what is your opion
PRANAV SANGHAVI answers, i have mentioned earlier also I would be more comfortable with a SAIL [Get Quote] or TISCo [Get Quote] in the steel sector than a Ispat.
PRANAV SANGHAVI says, We have touched 20,000...this is a phenomenal milestone even from last May's perspective when investors were totally in disarray.
Sunny asked, How do you see the market going forward in the near future and also in long term
PRANAV SANGHAVI answers, In the very short term we could get a correction but in the longer term I am still convinced about our bull run and should continue for another 3 to 4 years at least.
kalua asked, hold on to RPL for 2 yrs with the price target of 500
PRANAV SANGHAVI answers, Once the commercial productions starts it could touch that price.
sgvm asked, Is nagarjuna fertilizers a multi bagger stock?
PRANAV SANGHAVI answers, I think it has already risen 4 folds in as many months so it already can be called that.
thomasmathew asked, Hi Pranav, I hold shares of TTK Prestige [Get Quote], Gokaldas exports [Get Quote], Avaya, Tata metaliks [Get Quote],HUL, Mastek and Macmillan.What do you say about them? Sell or hold?
PRANAV SANGHAVI answers, Most of them are qwuality midcap stocks and you could hold them witha longer temr perspective surely.
Pavan asked, Do you think market will go for correction of about 3000 to 4000 Points ? Is sensex is over weight or Balanced
PRANAV SANGHAVI answers, A 3000 to 4000 point correction looks very difficult but amarginal correction cannotbe ruled out.
JVR asked, Good day. Hello sir. I would like to invest in stock. I would like to apply PAN card. My friend told me that once i get the PAN card then need to submit the income return every year eventhough there is no income. Is it true sir? pls answer my question sir. Thanks you so much...
PRANAV SANGHAVI answers, You do need to get aPAn card as it is compulsoryforstock investments in India. Filing returns is also mandatory as a resident Indian invidual.
Manzy asked, What is ur view on IFCI. What is its short term target and what is its future??
PRANAV SANGHAVI answers, As I mentioned earlier the price of the stock will now be dictated b the offer price the comapny receives and also the strategic investors plans for the future for IFCI.
mukesg21 asked, I have 200 shares of powergrid @124/- advise me should i hold or sold out
PRANAV SANGHAVI answers, I would hold on with at least a 1 year outlook.
Orbit asked, what about Indus Ind bank?
PRANAV SANGHAVI answers, It has risen marginally but there are better quality banks available in the market.
jj asked, What to do with M&M? Sell or hold?
PRANAV SANGHAVI answers, Hold. It madesomegoodstrategicmoveslike acquiring a tractor maker overseas, launching of the renault cars in India and their current brands like Scorpio continue to do well.
rohitr asked, Hai, the way LNT has moved up..do you see further rise? Analyists predictions of 6500 within the next four months is this justified?
PRANAV SANGHAVI answers, I think in a years time you could see those levels. There is some rumour that L&T plans to demerge3 of its 100% ownedcompanies so like RIL gave 4 free shares to shareholder I think L&T if it decides to demerge then will give somefreeshares of its subsidiaries post demerger. Plus they are gorwing at over 30% per annum and have a huge backlog of orders. I would hold onsurely.
vaibhav asked, Sir, Can u tell me abt GMR INFRASTRUCTURE [Get Quote]. I bought it @ Rs 159. What is the prospect of this company 1 year down the line. Is it a good stock to hold?
PRANAV SANGHAVI answers, GMR could be held as it is a decent play inthe infrastructure arena. It has some largeprojects udnerway and would yeild results to the company over the next couple of years.
Ashish asked, What is the scope of Walchandnagar Industries [Get Quote] it is currently at 8578/-
PRANAV SANGHAVI answers, They also have some great strategic stakes in various companies, large land bank also and some real estate development plans also. I would hold on.
aryan asked, is this right time to invest or shall i wait for some more time
PRANAV SANGHAVI answers, I would wiat for a dip to get in.
im asked, What Should the Small Investor Do??? Should Exit or Watch for more rise in sensex??
PRANAV SANGHAVI answers, In the short term ridethe marekts highs and book priofts at any sign of a correction.
PRANAV SANGHAVI says, Well due to timeconstraints I have not been able to answer alotof your questions. But it has been ahistoric day today with the SENSEX touching 20,000. But I think we will surely have new milestones over the next couple of years. Bye for now.