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Market crash? Here's what to do
 
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March 06, 2008 09:03 IST

It has been a tense week for investors with Sensex going down 900 points last Monday. On Wednesday, however, market cues were positive.

Will the Sensex move up from this point? 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 on Wednesday, market expert pranav Sanghavi replied to many such readers' queries. Here is the transcript:

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

ril asked, Hi,should i buy stocks now or wait for more downslide?
PRANAV SANGHAVI answers,  at 2008-03-05 15:58:29As I have mentioned over my past few chats, the markets still look a bit weak. The market should at best remain range bound. A run away rally looks extremely difficult in these circumstances. If you are a long term investor you can always buy frontline quality stocks in small parts on every dip of over 500 points on a single day with a 6 to 12 month outlook.
ram asked, hello sir, which stock best now ?
PRANAV SANGHAVI answers, Some of the Banking stocks have been hit hard due to the farmers loan waiver policy and the news of subprime exposure. I would use this opportunity to pick up PSU banks with a 6 month outlook. I would also look at stocks like L&T, BHEL which would post stellar performance despite all the market turmoil for the March ending.
satish asked, Should I buy DLF and ICICI bank [Get Quote] at current levels ?
PRANAV SANGHAVI answers, Both look extreemely attractive to me. They look to be over sold and could bounce back on any positive news. I would surely look at both the stocks. As fundamentally both are extremely strong companies.
ayush asked, i have bought icici bank at rs 940/-, rnrl at rs 220/- & shreyas shipping & logistic at rs 84/- . which stock should i hold & which stock should i sell so that my losses are minimised.
PRANAV SANGHAVI answers, I would surely hold on to ICICI and Shreyas of the three.
raja asked, hi, i am holding DLF @ 670, RNRL@115, RPL @170, SAIL [Get Quote]@259. Please tell me whether i hold this stocks for another 3 months or i sell these stock at loss.
PRANAV SANGHAVI answers, You can surely hold on to DLF, RPL and SAIL. with that time frame in mind.
rayud asked,  Should I buy NAGARJUNA FERTILIZERS AND POWERGRID?
PRANAV SANGHAVI answers, With a 6 to 12 month perspective, yes.
akky asked, hi pranav .. i have parsvnath, punj lloyd, ntpc, neyveli, godrej ind, any changes suggested?
PRANAV SANGHAVI answers, I don't think you need to change. You have a rpetty good mix of stocks. You could add a couple of banks to them though.
saurabh asked, Is this the right time to enter the market. I shall be investing for the first time. have 1 lakh cash to invest. pls suggest in which stocks to invest?
PRANAV SANGHAVI answers, If you ae not well versed with the markets, I would suggest you take the Mutual Fund route. If you do invest directly then pick frontline index stocks which are growing their profits by over 20% on a year on year basis.
ratheesh asked, Hi Pranav I am having 250 shares of HCL [Get Quote] @ 313, 300 Arvind mills [Get Quote] @ 67 and 130 Punj lyoad at the rate of 375. What i have to do in the present situation. I have another 50K to invest. Pls suggest goods stock for long term(12 to 18 months)
PRANAV SANGHAVI answers, You will have to hold on to see profits in your holdings. You could use the money to either average your stocks bu buying at lower levels or buy other quality stocks which have corrected sharply.
navin asked, what is the prospect of ntpc & reliance power Company
PRANAV SANGHAVI answers, I am more bullish on NTPC as they have a running capacity on ground where as Rel Power will have the same capacity thta NTPC has but only after 5 years. I would look at NTPC surely.
sandeep asked, Hi, I am having rnrl @ 137, should I hold or sell?
PRANAV SANGHAVI answers, RNRL is a traders stock and till now it does not have any substantial assets. Til the outcome of the battle with RIL [Get Quote] I would not put a lot of money into the stock.
Ashoo asked, Hows the future for Ashok Leyland [Get Quote], Petronet LNG [Get Quote], IFCI , Unitech in which i have stake?
PRANAV SANGHAVI answers, I like Ashok Leyland. There are talks of the interest rates going down which would benefit the commercial vehicle sector. IFC is only a traders stock currently and you oculd look at it once the government takes a call on what its next step would be for disinvestment.
akky asked, indian hotels, kale consult, gmr infra .. are any of them bad?
PRANAV SANGHAVI answers, I like Indian Hotels and GMR a lot. Kale might be affeted by the hike in taxes for packaged software in the budget.
jr asked, Hi Pranav, i had purchased facor steels 1000@12.57, one of my biggest mistake.. now it is around 6.5, if i wait for a year will i get profit or shud i book profit now?
PRANAV SANGHAVI answers, Book a loss you mean? If you can book a loss then you could look at getting out an investing in a quality stock which is trading 30 to 50% below its peak levels.
Laxmi asked, Iam planning to buy RPL and Mysore Cements [Get Quote]. When should i buy what price
PRANAV SANGHAVI answers, I would still wiat for a stock like RPL. Mysore Cements could be looked at on days of dips. But buy in parts as one never knows how long this consolidational phase will last.
maverick asked, STC is coming with bonus. Record Date is 24th March. Should I sell on 16-18th March ?
PRANAV SANGHAVI answers, If you wish to receive the bonus shares then you must hold till the 23rd of March atleast. If you do no intend getting the bonus you could sell at higher levels.
vipul asked, what do you say about the market? is it advisable to buy stocks like MUNDRAPORT, DLF, SUZLONE, NAGARJUNA FERTILIZERS and ISPAT?
PRANAV SANGHAVI answers, SUzlon [Get Quote], DLF have been hammered pretty badly off late. I would look at them with a long term perspective. You could also look at Nagarjuna Fertilizer as they beneift from the budget policies.
Ricky asked, Hi Pranav, This is the third question I am posting ....Not received response last two times......Suggest a few stocks which can potentially yield high % returns Not the typical safe stocks like RIL, RPL, Powergrid kind....I am really not bothered if I make loss...THE BIGGEST RISK IS NOT TAKING ONE
PRANAV SANGHAVI answers, Agreed to what you are saying. But taking risk does not also mean getting into B2 or penny stocks. You have to pick companies who have been performing consistently over a period of time. I would pick stocks like SBI [Get Quote], DLF, L&T, IDFC [Get Quote], NTPC and stocks also weaker stocks like Dena Bank [Get Quote], Praj Ind etc.
kkk asked, i have rcom 160 shares at 600,powergrid 350 at 145 and arvind mills at 77...what is the future,want to invest more in large caps(rel indus),at what price shud i buy and for how long shud i hold..??
PRANAV SANGHAVI answers, You will have to wait for some time before you see those prices. They are quality stocks so you should see them in the future. The budget also has some favorable policies for the textile sector. So I would hold on to Arvind Mills also.
skpathakntpc asked, i have putchased shreya shipping logistics powerfinance and ntpc omaxe all falling what happened
PRANAV SANGHAVI answers, Overall the markets themselves are falling. So it is not an individual stocks are falling. From the stocks you mention I like NTPC.
Rajesh asked, whoch one to choose DLF, HDIL, Shoba Developers? ICICI bank or HDFC Bank [Get Quote] or any other good bank?
PRANAV SANGHAVI answers, I would go with DLF. Both ICICI, HDFC and even SBI are good bets.
raviraj asked, i am thinking of buying hotel leela shares ....are they reliable to purchase for gains
PRANAV SANGHAVI answers, If you are investing with a long term perspective then yes.
kumar asked, sir, I'm holding 35 Tata Motors [Get Quote] @ Rs.741, Dish TV 350 nos @ 97,Reliance Petro 350 nos @ Rs.195, Suzlon Energy 100 nos @Rs.256. Kindly tell me should I hold these shares or should i exit with loss making. Can I enter Hotel Leela at current level
PRANAV SANGHAVI answers, You can surely hold on to Tata Motors, RPL and Suzlon with a long term perspective. Yes you could look at Hotel Leela.
satishs110 asked, I have noida toll @ 60 Hindustan motors [Get Quote] @ 62 Punllo @ 390 GMR @ 170 hfcl @ 40 please suggest what to do
PRANAV SANGHAVI answers, Hold on. You should see your rates in 3 to 6 months time.
ankur asked, can we buy cbop , yes bank , tvs motors , dlf at current levels
PRANAV SANGHAVI answers, Yes you could. Although instead of TVS [Get Quote], I would rather look at a Bajaj Auto [Get Quote] or Hero Honda.
prami asked, What is your take on MTNL [Get Quote]?
PRANAV SANGHAVI answers, MTNL has a strong balance sheet. It is sitting on huge tracts of land and prime assets in most major cities. If they every decide to leverage the same the stock could get rerated. Till then the results of the company shall dictate the performance of the stock.
Prakash Mendon asked, I have bought Parwnath @ 375 & Glenmark [Get Quote] @ 450. Pl tell me the future of these stocks.
PRANAV SANGHAVI answers, I would look at Unitech, DLF instead of a Parsvnath. Glenmark can surely be held and you shall see higher prices in the future.
sumit asked, Hi Pranav, Dena @ 88, Uco @ 62, Siemens @ 1560, Indian Hotels @ 140, Hold, Buy to average or Sell??
PRANAV SANGHAVI answers, If you could average it would be agood time to buy in parts every time the markets fall over 2 to 3% in a single day. All stocks will do well in the future.
Baddu asked, Hi Pranav, Can you suggest some good large caps which can be bought now. I am looking for stocks which can be hold for 2-3 years timeframe.
PRANAV SANGHAVI answers, I have mentioned a few in my previous replies please do refer. Thank you.
bharat_c asked, Hi Pranav I am New to this Field I would like yo invest some amount in Stocks and MF's and ULIP's please Guide me in all the above Sectors Thanks Bharat
PRANAV SANGHAVI answers, I will not be able to help you with specific funds or schemes but you wold need to consult a consultant in terms of what is your investment size, goal etc.
maverick asked, Kotak Mahindra at 675. Should I get in or stay away ....Any other alternatives in banking sector except SBI.
PRANAV SANGHAVI answers, You could get in but only when the markets drops a bit. Right now everyone is on the borderline and is not stepping in to buy as they expect the markes to fall.
Jarin asked, Hi Pranav, How about Suzlon, Is it a good buy if it goes below Rs.200
PRANAV SANGHAVI answers, Yes you could surley look at it with a long term perspective at those rates.
YOGISH asked, What about unitech ltd and suzlon enrg ? shoud i hold ?
PRANAV SANGHAVI answers, Yes.
d asked, what do u think about centurion bank of punjab merger with hdfc bank?
PRANAV SANGHAVI answers, Earlier the ratio was in favor of HDFC bank right now its almost on par. Cent BPO would be mergingn into a quality frontline bank so the shareholders of CentBPO will only benefit in the long term.
Gopi asked, Hi,Could you please tell me some good stocks in infrastrucutre and metal sectors for long term
PRANAV SANGHAVI answers, You could look at DLF, L&T, IDFC, Unitech, Grasim [Get Quote], BHEL, GMR and ACC which are either directly or indirectly related to infrastructure.
hara asked, What do your CALL on shares like ICICI,GMR INFRA and Reliance.
PRANAV SANGHAVI answers, Good long term holds.
sparshganju asked, i have got 50 shares of HEG@541. what is ur outlook on this share? is it likely to gain the lost ground or i should sell at the current loss.
PRANAV SANGHAVI answers, No I would hold on.
rakesh asked, reliance capital, any chances of that getting back in the range of 1900-2000
PRANAV SANGHAVI answers, Not in the near future. But when the markets do turn around and they post a decent jump in profits then you could see those levels.
aashvin asked, hi i have 2000 shares of nagarfert. at 56 rupees.. i can hold on for 6 months.. whats ur call on it.. what should i do
PRANAV SANGHAVI answers, Stay invested. It should benefit form the budget policy for fertilizer companies.
roomi asked, hi pranav i am an NRI wan to invest in share market i want to invest in long term equity which i can buy now and forget for 3 to 5 years and which may give me good gain too i wan to invest approx 5 lakh in share market .which shares do u recoomend me to buy .i dodnot want to put all money in one share so pls suggest some 5 to 10 shares were i can invest my money . thanks a lot
PRANAV SANGHAVI answers, I have recommended many stocks during this and my previous chats. If you would not get time to study the fundamentals of these stocks before investing you could also opt for the Mutual Fund route. You could look at large cap diversified funds which will yeild you decent returns over 3 to 5 years.
jayaguru asked, is it the right time to buy Ispat, Nagarjunafertilizers and RNRL.
PRANAV SANGHAVI answers, I would tread on trading favorites like ISpat and RNRL very carefully in such market conditions.
Gopi asked, Is it good to buy Siemens limited at the current market price? What is your say regarding ABB?
PRANAV SANGHAVI answers, Both are quality stocks you could surely look at.
SARAN asked, where the market will go from here
PRANAV SANGHAVI answers, In the short term the markets look weak. In the longer term the economy figures, the corporate results and th eglobal markets outcome will affect the our markets. Once the FII's turn buyers then our markets could rally agian.
abhimanyu asked, i m having 1000 shares @180/ of reliance petroleum can i hold these
PRANAV SANGHAVI answers, For RPL you will have to have a time frame of 1 to 2 years. This would yeild you good returns.
jeljoe asked, Sir, I have ITC@196,JKlakshmi@172,Jaiprakash asso @384,NELCO @202, Powergrid @119 looking for long term benefit, should I keep these stock or exit?
PRANAV SANGHAVI answers, With a long term perspective you could surely continue to hold on to the stocks.
Arun asked, Good evening Pranav. I have purchased Rel. Communication@599. How long should i hold to book profit
PRANAV SANGHAVI answers, I don't think the telecom sector will slow down. Infact I think it will grow at a decent rate over the next 2 to 3 years. With the new policy changes favoring RCom, I would suerly look at it from these levels.
pg asked, do u think the markets will be able to capture the all time high on 21K & if so by whn
PRANAV SANGHAVI answers, If our corporates keep performing they way they have over the past 2 to 3 years, I don't see why not.
ramprasad asked, Hi Pranav, I bought 10 SBI at 2000.should i Hold or buy more
PRANAV SANGHAVI answers, If you wish to take advantage of the rights issue and are in the stock for a long term then you could surely look at it.
amit asked, Sir , I bought nagfer 660 shares at 47 ,ispat india 850 shares at 45 & canara bank 270 shares at 275.prices of all the shares have come down,Should I hold it or sell it on loss.
PRANAV SANGHAVI answers, You could surely hold on to Canara Bank [Get Quote]. Nagarjuna Fert also can be held on to.
joe asked, Pranav how good is Petronet,Essar OIL [Get Quote] .How long should i hold it
PRANAV SANGHAVI answers, Essar Oil is a story like RPL. It has yet to begin its commercial production of its refinery. With a 2 year outlook you could look at the stock.
sankar asked, wat abt buyin L&T shares at the current price ?
PRANAV SANGHAVI answers, You could surely look at buying in parts on every dip.
Kaushal asked, I am long term investor say 4 to 5 years,I hold right now Reliance Ind, Rel Energy, L&T, ICICI Bank, GMR Infra. Should I continue to invest in these stocks and average out? also please suggest me other stocks which I can buy?
PRANAV SANGHAVI answers, Surely hold on. If you can average, even better.
jose asked, Can i invest now in SBI, L & T and RIL ? Term - 1 Year
PRANAV SANGHAVI answers, Yes surely.
JEETU asked, i have purchase infosys of rs 2042 of 10 shares so when it will be coming up stock
PRANAV SANGHAVI answers, It will take some time before you see new highs on Infosys [Get Quote]. I think one could stay out of the tech sector for some more time before entering the same.
Kalpesh asked, hi pranav....... where is the market heading towards?? how do we value this market. were the stocks overvalued & thus we seein this outrageous correction..... is valuations so weak that market is crashing day by day?/
PRANAV SANGHAVI answers, In the short term we could see a few more dips in the market. Over the longer term after a period of consolidation the markets look to go up. After all our economy is growing at over 8% per annum as per latest estimates of the Finance Ministry.
vikas asked, hi parnav i purchaced ITC@205 rs, rel power @425 rs. what is future aspect for 1 yr
PRANAV SANGHAVI answers, ITC has been range bound for the longest of time. Now it looks to have started an up move. Depiste hike in exicse oncigarettes, ITC could yeild you a return of over 20% for that time frame. REL POwer you will have to wait for some time to see new highs. Till some capacity gets commissioned or some positive news for the company comes out.
santosh1 asked, Hi Pranav, I have 50 Hind Zinc @ 650. Should i hold or sell?
PRANAV SANGHAVI answers, Hind Zinc is a strong stock fundamentally but it is a metal stocks which is a cyclical commodity. So one has to constantly keep a watch on global metal index prices and also the local demand supply cycles. With a long term in mind you could hold on.
PRANAV SANGHAVI says, Well it has been great chatting with you all. Bye for now and see you'll next week.

Chat with Pranav every Wednesday at 4 pm
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