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Which stocks to buy, sell and hold
 
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March 05, 2008 12:05 IST

Finance Minister P Chidambaram presented the Union Budget for 2008-09 in the Lok Sabha on February 29.

What impact will this year's Budget have on the stock market?
Which stocks will do well and which ones won't?

What should regular investors do with their money in the post-Budget market? Which stocks should casual dealers focus on?

How would you negotiate your way through the tricky maze of the post-Budget stock market?

What should your investment strategy be? Should you sell and get out of the market? Or buy more and stay invested?

In an hour-long chat on rediff.com on Tuesday, Mohan Natarajan, executive vice president and co-head, private client group, with Edelweiss replied to many such readers' queies. Here is the transcript:


Andy1976in@yahoo.com asked, 
Hi Sir, Still the share market is down ,when its expected to up.
Mohan Natarajan answers,  at 2008-03-04 16:48:33The Indian markets have now become increasingly linked to international markets. Though the underlying fundamentals of the Indian economy are good, the markets may remain in a range till the international financial situation improves.
riyasha asked, Sir, I have Binani Industries [Get Quote] 100 shares. Is this share have any future? Riyasha
Mohan Natarajan answers, Though Binani is not a bad company, there might be better plays such as ACC and Grasim [Get Quote] in the same sector.
Nisha asked, Now the STT and short term tax is also increase,so whats ur suggestion for trading or short term buyer
Mohan Natarajan answers, The increase in short term capital gains tax will motivate investors to hold shares for longer period. The change in treatment of STT may affect people who trade in the market on very short moves. For e.g. arbitrageurs and day traders.
viv asked, Which Bluechip shres u recomm for buyinh at present level for long term investment.
Mohan Natarajan answers, With the recent fall in the markets, infrastructure and capital goods sector looks good. Larsen would be a good buy.
Nisha asked, I am having shares like Punjlyods,Rcomm,IDFC [Get Quote],SBI [Get Quote],Powergrid,Cadila,so what will be future of this stocks
Mohan Natarajan answers, You can hold on to all these stocks. They are likely to do well once the overall market sentiment improves.
meenu asked, How Pantal,J.P.Associates,RNRL,RPL are expected to perforn
Mohan Natarajan answers, Pantaloons (I presume this is the stock) is a good play in the retail sector. So worth holding on to. J P Associates is a good real estate play, expect that there has been some recent untoward news about holding in a subsidiary company. RNRL and Rel Petro are good long term shares.
cv asked, hi i am 42 years i have savings of 60 lacs in ratio of 80 to 20 in debt to eq is the saving ok for my age
Mohan Natarajan answers, Invest more in equity, with valuations very attractive at this moment. Increase allocation to at least 50%.
rtgh asked, Sir, when will market become stable
Mohan Natarajan answers, Hopefully soon.
Rajagopal asked, Sir, What is stock market future, whether market will go ahead?
Mohan Natarajan answers, Given the fundamental strength of the Indian economy, the future of the Indian stock markets in very bright.
NK asked, PLEASE TELL ME ABOUT MRPL
Mohan Natarajan answers, The company has been showing some improvement in refining margins. Watch the stock over the next two quarters. Personally prefer Chennai Petro.
Dheeraj asked, Sir, could you please suggest the best long term investments for a middle class family???
Mohan Natarajan answers, Blue chip equity stocks.
Ninad asked, Good afternoon Mr. Mohan, I am an NRI based in Dubai. I would like to know in the current budget what facilities provided to NRI's. ( New if any )
Mohan Natarajan answers, None that I am aware of.
amol asked, sir i have 100 saytam @ 411 would i sell or hold
Mohan Natarajan answers, Hold.
Arjun asked, Which of these stocks can be held in the prtfolio..... JK Industries, Reliance Power, JP Associates, Crompton & Greaves
Mohan Natarajan answers, No idea about JK Indus. Rel Power is a very long term play. Jp Ass and Crompton are good.
ratnesh asked, i have 25 shares of REL kindly advice what to do
Mohan Natarajan answers, Hold with a long term view.
Rudra asked, Hi Mr. Natarajan. I have 100 shares of Jet Airways [Get Quote] at 855 per share. Please advice whether I should book loss or hold. Also, what is the future prospect of this share on both short term and long term perspective?
Mohan Natarajan answers, Wait till clarity on rights issue emerges.
santosh asked, Sir, I have 180 Unitech @310. Is it good stock to hold for long term?
Mohan Natarajan answers, Yes.
Adi asked, Can I purchase SBI, RIL [Get Quote] with a 2-3 years view at this level.
Mohan Natarajan answers, Of course.
asked, 
Mohan Natarajan answers, A good play in infrastructure sector. Can buy now.
kgparekh asked, will sensex touch 21000 in 2 to 3 months
Mohan Natarajan answers, Your guess as good as mine. However, unlikely.
m asked, hi , is gvk power is worthwhile or not for long term as well as short term
Mohan Natarajan answers, Good for long term. Play on infrastructure sector.
asked, 
Mohan Natarajan answers, Would prefer larger plays such as Unitech and DLF.
ASHOK asked, Sir, my portfolio is in deep RED,I had RIIL 50@ 2600/- now it is 1235/-,PARA CABLE 500@61/-now it is 30//
Mohan Natarajan answers, Possibility of a stock split in Para Cables. Please check. RIIL is a very good long term infra play.
ashishchaturvedii asked, with a PE of 3 what is future of JK LAkshmi cement [Get Quote] company hav egood fundmentls have own power mfg unit of capitve use is is this right time to buy ths
Mohan Natarajan answers, Cement industry could show a movement towards oversupply in the next year. Hence be cautious.
drshetti asked, SENSEX 25000 is that a reality in 5 YEARS
Mohan Natarajan answers, Looks likely, though predictions are hard to make.
Dhruv asked, What is your take on 60,000cr for farmers .Does that encourage farmer to not repay debt?
Mohan Natarajan answers, Good for the farmer!!!
jitu asked, i have 50 shares of mundra what is the future prospect. hold or sale
Mohan Natarajan answers, Hold.
jk asked, sir, i hold manali petro @22. i haVE 7000 UNITS. please comment what should with this stock since this is my first time investment. i can hold for 1 year more.
Mohan Natarajan answers, Move into large cap stocks.
mcasinghai asked, hello sir i have exposure in jphydro, idfc, yesbank , bihar tubes, telco , m&m, central bank of india, ntpc, neyvelli, manaskia, rpower, sujana towers, technocraft, house of pearl fashion . do i need to change my portfolio
Mohan Natarajan answers, Suggest you move into fewer stocks which will make it easier for you to track. The large cap stocks in your portfolio are all good and you might want to consolidate into these.
abhijeetsat asked, Sir,When CMS company is cming in to Market?
Mohan Natarajan answers, No idea. Please check on Sebi website.
mastboy asked, will market touch 14,000 as suggested by a stock trader....
Mohan Natarajan answers, Markets do look weak in the short run. However, unlikely to see 14000 levels.
LancoInfra asked, Plz share your views about IDBI, Omaxe, Adlabs [Get Quote], Lanco, Orbit, RajeshExports? I have huge amount locked in all these
Mohan Natarajan answers, All these are good stocks. However, you will need to hold on to them for the long run.
asked, 
Mohan Natarajan answers, If past precedents are to go by, yes.
milind asked, i brought jindal stl power @2159 & jaiprakasha associate @274 - 63 Nos shall i hold or sell
Mohan Natarajan answers, Hold.
rahuldevs asked, Hi Mohan can you tell what the budget holds for pharma sectors. How does it impact a company like divis
Mohan Natarajan answers, Good for pharma. Excise reduction. Divis is also positively impacted.
nurul asked, how come icici bank shares coming down day by day? can we buy more at these levels?
Mohan Natarajan answers, Yes, you can buy more at these levels.
vj asked, IS unitech a good buy? Compared to DLF how does it compare now
Mohan Natarajan answers, DLF is a bigger play on the real estate sector. Also has more plans in hotels etc which might show favourable upside due to budget proposals.
Pawan asked, Hi Mohan, Can you tell me the future of Market Post Budget, will the market touches the height again, as i am holding Petronet, Powergrid,Idea Etc, what are the prospects of these shares and is this the right time to invest
Mohan Natarajan answers, Right time to invest for long run.
mastboy asked, suggest abt manaksia should hold or sell ..got few on IPO ...
Mohan Natarajan answers, Sell if you are making money.
ashwani asked, HI Mohan, I have shares of KCP ltd [Get Quote] @790 what is the future of this stock? should I hold or exit?
Mohan Natarajan answers, Good company based in South.
thomas asked, which share is the best buy now
Mohan Natarajan answers, Any good blue chip stock. Particularly in Infra.
hema asked, I have 25 share of RIL Power.The price will up OR down in future. should i invest more money in this share
Mohan Natarajan answers, It is a very long term bet.
chat asked, sir i have HFCL, GTL INFRA ISPAT IND 500 STOCKS WITH 60%LOSS PL ADVICE ME
Mohan Natarajan answers, Move to large caps.
Pari asked, Can we hold Transformer & Rectifier (TRIL). Purchase price is 857...
Mohan Natarajan answers, yes. Buy more if you can.
santosh asked, Sir, I have 50 Hindustan Zinc [Get Quote] @650. What to do in long term?
Mohan Natarajan answers, Hold.
cheena asked, Hi, Is it right market capital is far higher than our GDP and it is fully speculative and we can hardly achieve the growth we bet far...Could you just put facts and figures of our market worth to the industry earning
Mohan Natarajan answers, In most developed economies around the world, the market capitalization in the stock markets is a multiple of the GDP. So there is nothing to be worried about.
Sureshb asked, I brought HTMEDIA 400 shares at 220, can i hold or sell
Mohan Natarajan answers, Hold.
gdeepak asked, i bought suzlon @ 255,Pl tell me the future of this stock
Mohan Natarajan answers, Good future.
prabhu20 asked, i bought relcomm 4 months earlier @538.whT SHOULD I DO?
Mohan Natarajan answers, Hold.
kamlesh asked, what do you think for next 2months stock market
Mohan Natarajan answers, Range bound consolidation.
kmreddy asked, sir i bought nagarjuna construction what abt those
Mohan Natarajan answers, Hold.
cvp asked, Sir. i have 125 welspun gujarat st, 100 jsw steel, 150 IDFC, 150 GMR infra. what is the future
Mohan Natarajan answers, Long term future is good.
anilsati asked, Hello Mr.Mohan, Do u think the Market will bounce back to its last year high of 21000
Mohan Natarajan answers, Yes. "When" is the moot point.
dhawal asked, What will be the impact of STT treatment?
Mohan Natarajan answers, Will affect arbitrageurs.
try asked, I have ICSA at 611 per share.. Should I hold that stock?
Mohan Natarajan answers, Hold.
somesh asked, Can i buy GMDC at this lavel
Mohan Natarajan answers, Yes.
Dalip asked, Sir, I have Suzlong 100 shares Rs. 320. Is this share have any future or should i quit
Mohan Natarajan answers, Hold.
Parimal asked, Which stocks to be hold for 10-15 yrs and will give good returns...
Mohan Natarajan answers, All blue chip stocks.
baiju asked, how tvsmotor look like for short term
Mohan Natarajan answers, Cut in excise might boost performance. However, suggest shift to Hero Honda or Bajaj Auto [Get Quote].
asked, 
Mohan Natarajan answers, Infra.
ANILK asked, Is it a good time to buy SBI, L & T and ONGC [Get Quote]?
Mohan Natarajan answers, Yes.
sanju asked, i have ICICI [Get Quote] & LT can i keep this share
Mohan Natarajan answers, Yes.
siva kumar asked, i have some 1000 rnrl @132, wat can i expect in next one month and when can i sell this stock
Mohan Natarajan answers, Long term.
kumar asked, hai sir, what will be the effect of budget on IT companies
Mohan Natarajan answers, Neutral.
Bandita asked, hello sir,which blue chip share you would recommend for the new buyers at present situatiopn..is it better to wait for some time to buy any share as the sensex is going down...
Mohan Natarajan answers, L&T.
suchitra asked, sir i have taken 150 nos of IFCI and 100 Nos of RNRL pls advise.
Mohan Natarajan answers, Exit IFCI. Retain RNRL.
rrr asked, YOu think sticking to IPOs now is a good idea
Mohan Natarajan answers, No IPOs are being launched.
supersonic asked, i have 40shares of JAIPRA @ 263. should i hold or average out?
Mohan Natarajan answers, Average.
GOVIND asked, Is Central Bank of India and Apollo Tyres [Get Quote] value picks?
Mohan Natarajan answers, Switch to large caps in banking. Apollo Tyres is ok.
jha_amar asked, i am holding 400 BHEL shares.What is the future of BHEL
Mohan Natarajan answers, Good.
dinkumgup asked, i have 200 jp associates @ 272 ,sir wht is the futrue of this scrip
Mohan Natarajan answers, Good.
sat asked, Whatis your opinion about BGR and Kotak mahindra bank [Get Quote]& RNRL Can we accumulate ICICI & DLF RPL & RCOM at current level
Mohan Natarajan answers, Focus on few shares, particularly blue chips.
BAD STUFF asked, What is the future of Tulip IT Services [Get Quote] in next 3 to 6 months ? Should one consider buying it @ Rs. 1000/-
Mohan Natarajan answers, Good.
SULTAN asked, i hold bharti tel & voltas.should i sell or hold ?
Mohan Natarajan answers, Hold.
ranjan asked, dear mohan what ar the future prospects of gail and gmr.
Mohan Natarajan answers, Good.
nikki asked, Please give your best picks among the PSU banks?
Mohan Natarajan answers, SBI.
BAD STUFF asked, How can I calculate my Short Term Gains Tax. Does the Demat A/c provider send out a Statement.
Mohan Natarajan answers, Please check with your CA. The Demat account provider does not provide any inputs for calculation of Capital Gains.
vmrao asked, what are prospects for aban ofshore, lt, and gmr infra. i have considerable investments in these stocks.
Mohan Natarajan answers, Good.
nikki asked, Hi Mohan ji which stocks in your opinion are the most undervalued at this moment?
Mohan Natarajan answers, Blue Chips.
sonal_jadhav84@yahoo.com asked, why market is going down and down day by day
Mohan Natarajan answers, Because of bad situation in international markets.
jai asked, Hello Mohan, What is the maximum amount one should go for Home Loan.
Mohan Natarajan answers, Depends on your need.
BAD STUFF asked, I have 375 Shares of Ramco Systems [Get Quote] @ Rs. 215 per share. What should I do ? What are the prospectives.
Mohan Natarajan answers, Switch to other s/w companies.
Pravin asked, Sir, market is going down day by day. Any sign of progress in coming days
Mohan Natarajan answers, Hopefully will stabilize in near future.
karan asked, what should be the strategy in these times?
Mohan Natarajan answers, Invest in blue chips for long term.
karan asked, Hi Mohan seems like a long correction and consolidation phase is still not over. when do you think will the markets stabilize? after fourth quarter results???
Mohan Natarajan answers, Possibly. But you can keep buying for long term.
jimmy asked, Dear Mr Mohan, pl advise which stock to invest . i've around 2 lacs to invest from which i wd like 2 triple my returns atleast in a years time. Tks Jimmy
Mohan Natarajan answers, Nobody can guarantee a tripling in three years. However, you can invest in some of the large cap stocks.
sree asked, i am having RPL RNRL NTPC GMR INfra,Gujarat NRE,power grid,hindustan motors,NFCL,Asoklyland ple advise me in this condition
Mohan Natarajan answers, All these are good. However, would recommend that you focus on 2-3 stocks.
Mohan_Natarajan asked, what do i do with MRPL i have 100 @ 78
Mohan Natarajan answers, Refining margins are getting better. So hold.
BHARATPITI1 asked, For the merger of Bongaigao with IOC, the exchange ratio declared is absolutely unfair to BRPL shareholders. Where to complain? already made number of representaions to both the companies but everything has fallen on the deaf ears.
Mohan Natarajan answers, SEBI and stock exchanges.
YS REDDY asked, sir, i have Cairn, DLF, NTPC, JP Associates, Sun TV [Get Quote], Vishal Retail, TCS [Get Quote], Shoba Developers. what is the future of all these stocks?
Mohan Natarajan answers, All these are good. However, stay invested in fewer stocks.
xcdfewaz asked, Which Frontline Stocks would you like with the long term perspective of 2-3 years?
Mohan Natarajan answers, L&T, SBI, Reliance Indus.
get asked, what about reliance communications and idea cellular
Mohan Natarajan answers, Rel Comm is a more preferred stock.
vit asked, in which ratio i shoud invest my age is 49 60 equity + 40 Debt or suggest me
Mohan Natarajan answers, Reduce equity exposure.
sini asked, hi sir can i buy gateway distriparks at this rate ??
Mohan Natarajan answers, Yes.
Jignesh asked, What will be the Market Trend for next 2 months , will it dip further down ??
Mohan Natarajan answers, It could.
CDMACWAN@REDIFFMAIL.COM asked, Can I hold First Source Solution (FSL), Central Bank Of India(CBI)
Mohan Natarajan answers, Yes.
Cecil asked, I think we have entered the BEARISH Cycle. DO you think for a few months the markets would be BEARISH?
Mohan Natarajan answers, Hope not.
Ketan asked, I had 100 Shares of Infosys [Get Quote] for Rs.1650/- What to Do????
Mohan Natarajan answers, Hold.
Mmmmm asked, Will the Sensex got o 11,000 ?
Mohan Natarajan answers, It can, but hope not.
susheel asked, Mohan I hold Man Ind, Transformers & rectifiers, Idea Cellular [Get Quote], Varun Shipping & Helio's & Materson. Please let me know on fundamentals of these comapnies. Thanks
Mohan Natarajan answers, Hold.
Mohan Natarajan says, Thanks. Happy markets.


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