Despite weak global cues continuing for some time, Indian stocks were in great demand, especially auto, pharma, IT and metals stocks. On July 6, this lifted the Bombay Stock Exchange's benchmark 30-share Sensex past the magical 15,000-mark.
The unprecedented Bull Run started on May 6, 2003 when the Sensex was at 3,001.21 level. In took just 67 trading sessions to cross the 4,000-mark and touch 4,026.27 points on August 19, 2003.
Did you make profits while the Sensex scaled dizzying heights last Friday? 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?
Stock market expert Pranav Sanghavi, director, Jitendra Harjivandas Securities (P) Ltd, replied to many such readers queies on Wednesday. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone. Welcome to the chat. Let's begin.
Victor asked, Hi, Good Afternoon, What is the impact of Q1 result of Infosys? Will it decline now or move forward? and what about TCS and other tech stocks? What should be our strategy?
PRANAV SANGHAVI answers, at 2007-07-11 12:12:46Hi Victor, Good afternoon to you too. I think they have managed a decent quarter depsite the rupee having depreciated by over 7%. I think all the other tech companies will also give similar results and weaker guidance. I think in the longer term of over 1 year they will surely find solutions to plug the problem of a weakening dollar.
Victor asked, Do u see correction in coming days or upside in the market
PRANAV SANGHAVI answers, I think the markets have had a decent run despite the tech sector not contributing at all in the past couple of months. I think once the Index goes to a PE of 20 or 21 there could be a minor correction.
fff asked, Do you see a fall in Infosys shares?
PRANAV SANGHAVI answers, Not beyond a certain point. I think around 1900 levels you will see some institutional buying which could give support to the stock.
Pradeep asked, Sir, I have DLF(30), Parsvnath(20), Indiabull Real Estate(20) and Unitech(10). Suggest me to keep them all or get rid of someone.
PRANAV SANGHAVI answers, I think barring Parsvanath all the other 3 are decent players in the real estate development arena. DLF will be a much longer play than the others. i thini Unitech should deliver decent results in FY08.
Ritesh asked, Hello Sir Good Afternoon can you say when there is a correction i market and which are the stock to keep on watch
PRANAV SANGHAVI answers, Hi Ritesh, good afternoon. I think a minor correction could be round the corner. The market has risen and with the tech sector which did not contribute in this quarter also has given weak results which will not give the additional fuel to the markets. Once the other sectors are fairly valued or slightly over valued, we could see a correction.
ggg asked, Hi, is it ok to buy cement stocks
PRANAV SANGHAVI answers, Yes maybe this quarter is not that impressive but overall I think they shall fare well in the come year or so.
Pradeep asked, How do u see Ambuja Cement, MRPL and Petronet LNG. All three are not climbing up...Is there any scope for them?
PRANAV SANGHAVI answers, I think MRPL, Ambuja should fare well in the short term.
nick asked, hello sir, good morning what is your outlook on IFCI and ICICI... could you suggest few more stocks for 2-3 months prospects
PRANAV SANGHAVI answers, Hello Nick, I think IFCI is a turnaround story and it should rise steadily. It has a lot of NPA issues to be sorted plus in about 3 to 4 months time they should finalise a strategic partner too. ICICI surely could be held for another couple of years.
sunilcapri asked, I hv RIL 5@1743.Pls suggest sell or hold?
PRANAV SANGHAVI answers, RIL is weighted heavily on the index. So any movement in the index will surely reflect on RIL too. If the correction does come in the RIL will surely correct too in tandem with the index.
Ritesh asked, i m having iqms software @1.20 no of shares 10000 and now the rate goes down so what should i do hold or sell. flimcity @1.02 no of shares 5000 and now it moves to lower curcit so what should i do
PRANAV SANGHAVI answers, I do not follow penny stocks so will not be able to help you on these sorry.
ala asked, sir, I have been advised that mInistry of Company Affairs has issued guidelines to give a exit route to physical holders of shares. But no corporate cos is giving such route. How to dispose of physical shares, where one is not able to demat them and also small shareholders do not have broker.
PRANAV SANGHAVI answers, One can enter physical trades at a rate slightly below the markets rates on the trading terminals. Kindly check with your broker. One has to sell shares through a registered intermediary like a broker. So you will have to set up an account with one.
ganesh asked, is RNRL a good buy now
PRANAV SANGHAVI answers, With a long term outlook, yes.
ganesh asked, hello sir, will dlf go below the issue price...??
PRANAV SANGHAVI answers, There is plans of including DLF in the index stocks. So if the index corrects so can DLF. But there is a huge institutional demand for DLF at lower levels. So it may breach the issue price but only briefly.
ams asked, WHats ur view on Everest Kanto?
PRANAV SANGHAVI answers, Everst Kanto is a strong player in the Cylinder business with over two decades of experience. I think they are performing well also which reflects in their results and look to continue doing so.
ganesh asked, sir, wats ur view on midday multimedia and lanco infratech
PRANAV SANGHAVI answers, Midday has been range bound over the past few quarters. I think it needs two strong performing quarters or some news to break out of that range. Lanco has been rising but I would do my due dilligence before investing with them.
deepak asked, Good Afternoon, I started investing in equities last month and have invested equally in shares of RPL, REL, Nagarjuna Cons, RNRL,Hitachi, IFCI, Tata Power, and Kesoram and have made book in most of them, shall I continue to hold on to all of them or shall I sell some of them now?
PRANAV SANGHAVI answers, Good afternoon Deepak. i think most of the stocks you have mentioned are quality large cap or mid cap stocks. I think if you are a longer term player then you can hold on. If you are in for the short term then you could book profits before the correction.
sandykothari asked, I have Reliance communication 20 at 403. pls guide.
PRANAV SANGHAVI answers, I think you can surely hold it is one of the largest telecom players in the country today.
Abhijit asked, Hi Pranav, I have the following stocks on NSE - ITC, Graphite India, Aztec, Gitanjali Gems. All are showing losses. Do you feel that I should sell one or more of them? Please advise.
PRANAV SANGHAVI answers, They all have underperformed the market. I think you could hold on to Gitanjali and ITC and you could see gains.
Babu asked, Hi Pranav, i have 200 shares of wipro which I buy @552 per share, can I sell now
PRANAV SANGHAVI answers, Hi Babu, I think the Wipro stock may further correct as the tech results are supposed to be lack lustre. You could sell now and get in at lower levels.
daspeedee asked, shall i buy IFCI at the current price ?
PRANAV SANGHAVI answers, If you are a longer term player yes.
dinesh asked, hi sir, what is future of Divis lab . Iam holding @ 6520/-
PRANAV SANGHAVI answers, I think the stock is headed for a split. You could hold on as it may appreciate beyond the split.
akash asked, Hi Pranav, i biught BESL Infrastructure at 93, it has been languishing at 70
for quite some time now.What should be the outlook on the share. hold on or book loss
PRANAV SANGHAVI answers, I would book a loss and swithc to a growth stock. Get in at a correction.
Abhijit asked, I have Rs 10,000 to invest immediately and looking for max absolute returns. Should I buy 100 stocks of RPL at 115 each or 5 stocks of L&T at 2400 each? What is your advice? Thank you.
PRANAV SANGHAVI answers, I think you should wiat for a correction and buy on dips rather than enter at prices which are near year highs. Although if you can hold for a2 to 3 years then you could surley look at RPL and L&T.
ganesh123 asked, i hv 200 infy shares.I need money so do i sell them now or wait for couple of days?
PRANAV SANGHAVI answers, I don't think you wll see a rally any time soon in Infy. The price may bounce on short covering and you could use that bounce to sell.
RahulKhanna asked, Hi Pranav, I am looking to buy Relcomm. Is it the right time to buy it for a 6-12 month period ?
PRANAV SANGHAVI answers, Yes you could.
venky asked, Piease guide me about fortis.I have got 60shares thru IPO about Rs.108.But now it as low as rs.81.What is your advice?.
PRANAV SANGHAVI answers, I would hold on. You should see a return on your investment.
sandykothari asked, what is the future of uti bank
PRANAV SANGHAVI answers, I think it should perform over the next few quarters. Especially since there is a possibility of the intrest rates falling marginally beyond September.
gsvs asked, Good afternoon Pranav. Your views on TTML please? I bought IVRCL @310, GMRINFRA @360 and UNITECH @420 - from a long term perspective (3 years).. Your views please..
PRANAV SANGHAVI answers, I thin you have made good choices in the infrastructure development stocks.
gsvs asked, Good afternoon Pranav. Your views on TTML please? I bought IVRCL @310, GMRINFRA @360 and UNITECH @420 - from a long term perspective (3 years).. Your views please..
PRANAV SANGHAVI answers, I thin you have made good choices in the infrastructure development stocks.
srinivasan asked, which are the sectors which promise good growth in the coming year
PRANAV SANGHAVI answers, I think Banking, Telecom, Infrastructure and Capital Goods are some of the sectors which could see a spurt. I think once the Rupee stabilizes and if it does then the Tech stocks too.
alok asked, whether voltas would touch 150 in next 2 months
PRANAV SANGHAVI answers, I don't know if it would in the next two months but in the longer term I think it can.
Sid asked, HI Pranav,I invested in the IPO of DLF. I have got the shares but still it is not reflecting in my portfolio.Why so?
PRANAV SANGHAVI answers, I think you need to write to the Registrar of the company. They should expedite the problem immediately.
qein asked, Hello Sir, Your views on BASF?
PRANAV SANGHAVI answers, I think it is a strong MNC player. It should continue good performance.
upendrah asked, I bought 65 bharti shares @ 737. now its quoting around 870-880.. shold i hold or sell???
PRANAV SANGHAVI answers, You could book profits and get in at a correction. But if you are a longer term player then you can continue holding.
Ishwar asked, How is the market now? Is it good to stay invested or sell one's stock?
PRANAV SANGHAVI answers, The market is trading at around 18 or 19 PE. There is scope for another 10% increase from here. Beyond that there should be a minor correction.
ram asked, i have bought 500 vikaswsp @25 . this scrip listing or not
PRANAV SANGHAVI answers, I think it is delisted.
ganesh123 asked, Hello sir,plz tell me wat is suitable time to sell infy shares?
PRANAV SANGHAVI answers, I've given a similar reply earlier please refer.
Sumit asked, Hi Pranav I am an active investor in markets with interests diversified in various sectors. However, I wish to consolidate my position and am looking for scrips that are fundamentally strong and one can hold them for mid term. Any suggestions on the same?
PRANAV SANGHAVI answers, I think L&T, SBI, BHEL,and some more are fundamentally extremely strong. and you could look at them with a long term perspective.
bears asked, What is the future of ICRA
PRANAV SANGHAVI answers, I think it should yeild decent returns ovr a 6 to 12 month period.
ramkiaus asked, Hi, What could you expect from Indian mkt in next 4-5 years ?
PRANAV SANGHAVI answers, I think we should newer highs and a lot more milestones. But it will depend on a lot of factors like governmental policies, investment in infrastructure, continued strong corporate performance etc.
Ishwar asked, I have invested in HDFC Mutual Fund Long Term Equity fund? How is it functioning?
PRANAV SANGHAVI answers, I have not seen their investment list recently but I think they are doing fine.
venky asked, Hi Pranav,Is it the right time to enter when the market is peak?.What is your advice?.In this scenario what are all the sectors do you recommend to the investors?.
PRANAV SANGHAVI answers, Even in this peak there are certain laggards which one could look at. But it is advisable to get in at corrections.
sami asked, WHAT IS THE PROSPECT OF ACC AND JK CEMENTS IN NEAR AND LONG TERM
PRANAV SANGHAVI answers, I think the cement stocks may not perform that well in this quarter due to rains but they will do well over the next few quarters there after.
sachin asked, Hi pranav.. i have invested 1.9 lakhs in foll stocks.. infy 40@2050 tcs 8 @ 1200 techm 20 @ 1725 fsl 100@ 82 cinemax 25 @ 172 atlanta 5 @ 1400 ttml 100 @22 idea 200 @ 89 bharti 10 @ 725 icici 20 @ 800 rcom 20 @ 430 gmr infra 25 @ 210 i want to modify my portfolio with stocks like ril, relcap, suzlon,L&T, gbn Please tell me from which stocks i can put my money and invest in these stocks. I am medium term-long term investor. Sachin
PRANAV SANGHAVI answers, I thin you have good mix of stocks but do email me your query and I will try and revert with a decent mix and changes to hold on to.
Don asked, what about tech mahindra, TCS? Hold or sell? Infy results discouraging.....i can hold for 12 months..... Can u suggest some other good stocks to invest at this time?
PRANAV SANGHAVI answers, I think their results may be a bit soft due to the weak rupee but I am pretty confident they will overcome that aspect in the future and perform well. Fundamentally they are storng stocks and in dollar terms also they should give good results.
Mahi asked, Please tell me the future prospects of ASHOKLEYLAND. Thanks
PRANAV SANGHAVI answers, If the interest rates do plateau or fall marginally then one could see a boost in the commercial vehicle sales. Till then it may remain rangebound.
pol asked, hello, is it the right time to buy bajaj auto/ infy stocks now that they are on a decline.. wat abt buying welspun gujrat/NIIT stocks ?
PRANAV SANGHAVI answers, That is a contrarian approach to investing. A time when because of interest rates and weaker dollar most people are shunning these stocks you are looking to get in. Historically both these companies have been strong performers and with a 2 year outlook you could surely look at them.
PRANAV SANGHAVI says, Well its time for me to leave. Bye for now, hope to see you all next week.
Chat with Pranav Sanghavi every week!