Queries poured in from every corner. Fuelled by the unpredictable market, investors' concern, it seemed, had no end. Will the market retain its volatile nature? Is it the right time to invest? Market expert Pranav Sanghavi answered many such questions during his weekly chat on Tuesday.
Here is the chat transcript:
Pranav Sanghavi says: Hi everybody! I am here. Let's chat.
Rott asked: Arvind Mills...Uttam Galva Steel...Punj Lloyd..Andhra Bank....how are they?
Pranav Sanghavi answers: Arvind Mills and Andhra Bank are good long term buys.
Good asked: Is it safe to invest in stocks right now?
Pranav Sanghavi answers: At around 9,000 levels: you could buy on every dip. I don't foresee any problem at this level.
Manoj asked: Hello, I am a small investor. I invested in Mahindra Gesco at Rs 800, Rcovl at Rs 300, Gujrat Nri Coke at Rs 80, Jindal Stainless at Rs 123 and South Indian Bank at Rs 65 and hence, incurring huge losses. I want to know all these scrips (as given by websites and agents) are good in fundamentals but showing poor performance. What is the reason? When will these bounce back?
Pranav Sanghavi answers: Poor performance of these stocks is because of the overall market conditions. On a longer term you shall see profits.
Ozzjim asked: I am a software professional and I want to enter the stock market. But before I do that I would like to test the waters first. Could you please suggest a way?
Pranav Sanghavi answers: Keep an offline sauda book wherein you write the trades you want to enter into. See your performance over a couple of months. then you would be prepared.
Sans asked: Hi, I want to buy Reliance but currently it is at 900+. Should I wait till it drops to 830. Do you see any possibility of that happening?
Pranav Sanghavi answers: In spite of being a strong performer: Reliance as a company is unfortunately the most volatile stock of 'A' group shares. So 830 levels are possible if the market moves downwards.
Ramya asked: Hi: I purchased Reliance Petroleum shares for Rs 62. What is the future for this share? Should I sell it now or hold it for some more time?
Pranav Sanghavi answers: Please refer to my last week's chat transcript.
Tahera asked: Is it a right time to buy stocks in tech & cement sector?
Pranav Sanghavi answers: On every downward movement: you could buy these stocks.
Sansin asked: Hello Mr Sanghvi, please tell me what factors drive the stock market?
Pranav Sanghavi answers: No single factor but various things affect the market. The factors keep changing from time to time. I would need a longer session to get into details.
Girish asked: Is it good to hold on with the stock of Century Textiles, which I had purchased when the price was around 600? Today it is around 340.
Pranav Sanghavi answers: In the textile sector, this is one of the frontline stocks. In long term, it should give you a profit.
Fgh asked: Hi, I have recently started a systematic investment plan of Rs 1,000 each in Fidelity Equity, HSBC Advantage Fund, HDFC Top 200 Fund, Franklin Templeton and ICICI Prudential Fund. Have I made the right choices?
Pranav Sanghavi answers: Yeah, you have made great choices. Thirty years down the line, you should be a multi-millionaire.
Sumniree asked: Hi, Is there any chance of gold prices rising in future?
Pranav Sanghavi answers: All the commodity and metal prices are witnessing downward trend. We have to wait and watch.
Nikhil Deshpande asked: Hello, I m a fresher: an under-graduate. Should I invest in the stock market? If yes where should I invest?
Pranav Sanghavi answers: As mentioned earlier, if you can devote time to this activity, you could invest on your own but only in quality frontline stocks. If not, then go for mutual funds or systematic investment plans.
Kvs asked: What is the profit for existing shareholders of a company when a stock splits? How long should I hold any stock when the dividend is declared?
Pranav Sanghavi answers: Any stock is perceived to look cheap psychologically when it splits and a five to 10% jump is seen in the price soon after it splits. You should hold on to a stock till the record date is declared by the company to distribute dividends. Sell only after that date to get the dividend.
Prasrin asked: Marksons Pharma, Mercator Lines...how are they?
Pranav Sanghavi answers: Mercator has given impressive results and one could hold on to it. The other one I don't follow.
Mehul asked: Hi, I am Mehul. I have invested nearly 1,50,000 in market and have stocks from A as well as B1 group. What do you think the future of my portfolio will be? Down by more than 50 per cent as I started investing in an index of 10,000 up to 12,500? I have no more money to invest. What is your advice?
Pranav Sanghavi answers: I would need to know your time horizon for the investments made.
Maverick asked: I have invested about 25,000 in various mutual funds on April end. But due to this fall, I have lost around 6,000. Please advise if I should stay Invested which I can for at least one and a half years. And if so, will I see any gain in my capital?
Pranav Sanghavi answers: Yes, please stay invested. Mutual funds and foreign institutional investors are seeing an exceptional value in our market at 9,000 levels. India's story is still intact and on a longer term. The index should head north.
Eshwar asked: What does a share's face value mean? Some shares have a face value of Rs1, Rs.2 or Rs.10 What does this signify?
Pranav Sanghavi answers: It reflects if the stock has been split or it is at its original Rs 10 face value. This will assist you while calculating dividend and earnings per share.
Hk asked: What will be the target for VSNL, Reliance Energy for next six months?
Pranav Sanghavi answers: You could see a 30 per cent gain in a year's time.
H2_c asked: Hi Mr Sanghvi, What is your opinion on the following companies: Unichem/Hikal/HclTech/Dishman/Tisco/Sterliteind/Shanthi Gears?
Pranav Sanghavi answers: Unichem, Tisco, Shanthi Gears are better stocks from the lot. For others, you need to wait and watch.
Sunil asked: Dear sir, I have 5,000 Indo Asian fuse at Rs 280. For how long I will have to wait to get my price?
Pranav Sanghavi answers: I don't follow this stock but I am assuming this is an auto ancillary stock. This sector will do well in future.
Senthilkumar asked: Hello, I invested RPL buy at 85. Ii want to know the future of this share.
Pranav Sanghavi answers: Please refer to my earlier response.
Mehul asked: My time horizon is six months to one year.
Pranav Sanghavi answers: If you have an alternate investment opportunity, book your loss and sell or hold on for a year at least.
Rott asked: What is the six-month target for Bajaj Auto and NTPC?
Pranav Sanghavi answers: Bajaj Auto has been hammered in this correction and so has been NTPC. So in six months, you should see at least 15 to 20 per cent return from current levels.
Sajnas asked: What are prospects for capital goods and engineering? Are they over valued?
Pranav Sanghavi answers: I don't think so. The rate at which India's infrastructure is developing or plans to be developed: there will be a huge demand for these sectors.
Ajay asked: Tell me about Nalco.
Pranav Sanghavi answers: You have to watch the movement in the LME for the outcome of this share. Fundamentally, it is a good company. In its peer group, I also like Hindalco.
Smitar asked: I want to invest in stock market through SIP from some bank/financial insti. Can you please suggest me some bank/plan?
Pranav Sanghavi answers: SBI, DSP Merril Lynch and other players like Fidelity and Templeton offer decent SIP schemes.
Ramanathanrmn asked: I am holding 100 shares of ABB purchased at the rate of Rs 3,170 per share. Now the market price is Rs 2,100. Advise whether to hold or sell and purchase again latter.
Pranav Sanghavi answers: Please hold and if you have funds and conviction, buy further at current levels.
Soni asked: I am holding RNRL 1,200 at 32.10. What is it future? Shall I hold it?
Pranav Sanghavi answers: This is the least studied company of the four venture stocks given by Reliance to its shareholders. On a longer term, it should do well.
Kunaljain asked: Hi Pranav, where is this market headed for? After three sessions of handsome rally, today again the market has shown signs of nervousness. What should a retail investor do?
Pranav Sanghavi answers: As I mentioned earlier, the market will remain choppy in short term but if you invest with a longer term outlook, 9,000-odd levels is a good time to enter the market.
Simple asked: Are IT stocks going for a further downtrend -- JMMS indicated 15% down?
Pranav Sanghavi answers: The frontline IT stocks are often hammered first to bring down the market. So is the case in the upswing also. If the short term looks weak, they could fall by 15 to 20 per cent.
Greekgods asked: I predict that market will go down till 7,000 points. I have predicted the current crash in January itself.
Pranav Sanghavi answers: Hopefully, you have made a lot of money by now. But beyond a certain point, valuations of a company will not allow the index to fall.
Ajiths_72 asked: Hi, I have invested in a SIP of Rs 5,000 in HDFC Equity fund. Is it a good thing to do? Thanks.
Pranav Sanghavi answers: Yes it's a wise decision.
Ajay asked: visit http://www.stockbaazigar.com for stock queries
Pranav Sanghavi answers: I will. Thank you.
Def asked: How about buying shares of Adlabs at a price of 200 per share and what are the prospects of Adlabs ?
Pranav Sanghavi answers: After having come under ADAE group, a lot of funds have been invested in the company. These funds are being deployed to expand their multiplex network throughout India in the A B and C cities. A large chunk is also going towards movie production and enhancing their post-production facilities.
GOPAL asked: I am holding 101 shares of Unitech purchased in 2000. What should I do now?
Pranav Sanghavi answers: You are sitting on a handsome profit. If you need the cash, sell. If you don't, you could book a part of the profit and invest into other frontline stocks like ITC, TCS etc.
Bill asked: Hi , what are your views on UB holding, the parent company of Kingfisher Air and McDowell?
Pranav Sanghavi answers: The UB group has grand plans for their airline business. They might come out with an IPO in future which will benefit the holding company. In the liquor business, in terms of sheer volume, they rank in the top five companies of the world.
Sri asked: What is your call on Sterlite Ind? Can I buy at present levels?
Pranav Sanghavi answers: Another Starlite group company called Malco holds a large chunk of Sterlite Industries share. You can look at buying Sterlite indirectly through Malco.
Vijay asked: Hi, Can I buy IVRCL and Canara Bank at these levels?
Pranav Sanghavi answers: IVRCL, being an infrastructure stock, you could. Instead of Canara Bank, I would rather go with a frontline bank stock like ICICI, HDFC or SBI.
Manueldcruz asked: Hi, How is Teledata Informatic to buy around 10 which is talked as India's fastest growing company. And L&T post-bonus will trade at what price?
Pranav Sanghavi answers: For Teledata, I recommend you study the stock and the balance sheet carefully and read between the lines. As for L&T, it should come up to its current price post bonus in two-three years.
Sharekhan asked: Hi, are TCS and Gujarat NRE coke giving bonus shares?
Pranav Sanghavi answers: TCS is but not sure about Gujarat NRE.
Arjit asked: What is future of Chwgule Seamless?
Pranav Sanghavi answers: Did you mean Chowgle Steamship?
Prasad asked: Has the market bottomed out?
Pranav Sanghavi answers: We have seen strong support at 9,000 levels. But I would still advise caution.
Praveen asked: Which are the safest options in SIP (ensuring no loss of principle amount)?
Pranav Sanghavi answers: Till now Indian government does not permit market intermediaries to issue capital-guaranteed instruments. We should see the same in near future.
Prasad asked: I am self-employed. At these levels, should I purchase some frontlines like Sterlite Ind, ITC, HLL, Infosys, TCS, RIL, Tata Motors?
Pranav Sanghavi answers: At every fall, you could buy a percentage but not in one shot.
RR asked: What is your take on Bongoigon refinery?
Pranav Sanghavi answers: The outcome of refinery stocks depends on various factors like crude oil prices, sharing the government's burden of price subsidy and the refining margins.
Punter asked: I don't think it's a broker's job to give stock recommendations. A brokerage firm must restrict itself to handling paperwork and leave the stock market advice to investment professionals.
Pranav Sanghavi answers: These are my personal views. Our firm only entertains our existing clients.
Bachi asked: Hi: I've taken Prudential Life Insurance life plan 20 K per year (ULIP). Is this a good one?
Pranav Sanghavi answers: Yeah, it's a good investment.
RSJain asked: Will IOB rise?
Pranav Sanghavi answers: The outcome of the banking sector shall depend on interest rates, the management of non-performing assets and various other factors.
SriSriSri asked: When will our stock market get stabilised more or less around 12,000 range?
Pranav Sanghavi answers: No one can predict accurately but in 6 to 12 months from now, our market should stabilise.
Ashok asked: When do we see BSE at 15,000?
Pranav Sanghavi answers: The sooner the better but realistically not until the year after.
SKA asked: Pranav, what is your opinion on Reliance Capital?
Pranav Sanghavi answers: Please refer to my last week's chat transcript.
Vikas1 asked: MARKET: 25 bps already discounted if FED hints at one more in August, do you see market to fall drastically and then subdued for 1 to 2 years or our corporates will bring life back in the market.
Pranav Sanghavi answers: The federal interest rates have risen from little under two per cent to the current five per cent. A 25 basis points should not drastically change the FII investments in India.
Sanjay asked: Tell me five fundamentally sound stocks for bottom?
Pranav Sanghavi answers: ITC, SBI, TCS, Infosys, Tisco and various others.
Harry asked: Please mention 4 to 5 stocks to invest Rs 100,000 in.
Pranav Sanghavi answers: Please refer to my previous answer.
Praveen asked: Should I hold on to my UTI MEP96 or sell them?
Pranav Sanghavi answers: I think you are still in profit. Please study the holding of the MEP96. If it consists of growth stocks, hold on.
Sundar asked: I am new to this stock market. Could you please suggest: how to buy, from whom to buy and what to buy?
Pranav Sanghavi answers: First, you need to register yourself with a brokerage firm. The latter will guide you through the entire process.
Anand_Desh asked: What are prospects of CIPLA by this year-end?
Pranav Sanghavi answers: Cipla has developed certain pharma products, which are awaiting USFDA nod. If they get it, their sales should jump substantially.
Sans asked: Sir, what is the PE ratio? Is it the core factor that drives the company's stock price?
Pranav Sanghavi answers: The PE Ratio is price to earnings ratio. It is derived by dividing the market price by earnings per share of the company. It is just one of the parameters that an analyst would study. As a thumbrule, a 10 PE ratio for a company suggests a buy.
Pranav Sanghavi says:Like always, it was nice chatting with you. Take care. Happy investing. See you again next week.
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