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One should never try to time the markets

Last updated on: July 17, 2007 18:15 IST

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.

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?

To get answers to your queries, speak to stock market expert Madhusudan N Sarda Director – Research, Mehta Equities Ltd


sudarsan asked, hi madhu,I am having 20 shares of RPL this is the time to sell or not
Madhusudan N Sarda answers,  at 2007-07-17 15:53:19RPL is a big story unfolding in itself. Since most of its operations havent even yet commercially started, one should hold this stock for long term for good returns.


Patel asked, Should I hold Lanco Infrastructre shares,which I get in IPO???
Madhusudan N Sarda answers, Infrastructure sector in itself has picked up the limelight and is performing well since the start of DLF IPO. Lanco Infra has still lot of value unlocking. One must definitely hold this counter in this space.


kam asked, What you think abt market ,this will tuch 16000 by this month end
Madhusudan N Sarda answers, 16000 bu this month end is a highly optimistic level. One should however expect it not too fall from the current levels by the month end.


Ujjwal asked, Hi Sir, Can I enter RELCOM on the current rate. I am looking for 1 year time frame. Please advice?
Madhusudan N Sarda answers, RCOM has started aggressive Capex in CDMA and GSM space. this holds good for the long term. Also RCOM management has indicated that the company is in the process of spinning off its tower business (RTIL) and Flag telecom (submarine cable business) in the next 3-6 months. We expect these spin-offs to lead to value crystallization and act as a catalyst for RCOM share price appreciation.


kam asked, hi What abt OmexIPO should invest some money in this
Madhusudan N Sarda answers, Omaxe, with its established brand name, focus on quality construction and strong execution skills, is well placed to benefit from the rising demand for residential and commercial real estate in India. Moreover, we believe the company's strengths mentioned above would ensure strong realizations for all properties, resulting in sustained growth in revenues, profitability and earnings in the future. SUBSCRIBE.


krishna asked, hi madhu,having HCC @ 123..should i hold or sell for 1 year?
Madhusudan N Sarda answers, With huge order book, ambitious projects and a good mix of commercial/residential/infrastructure HCC is all set to deliver nice set of results for the coming quarters and the year. We recommend this as a long term bet.


shyam asked, Hi, What are your views on the Omaxe IPO?
Madhusudan N Sarda answers, Omaxe, with its established brand name, focus on quality construction and strong execution skills, is well placed to benefit from the rising demand for residential and commercial real estate in India. Moreover, we believe the company's strengths mentioned above would ensure strong realizations for all properties, resulting in sustained growth in revenues, profitability and earnings in the future. SUBSCRIBE.


sundar asked, hi sir what about the mutual funds schemes which invest in foreign stock markets? anybody is going good?
Madhusudan N Sarda answers, Currently all of the MF's whose scheme was focussed to invest in foreign markets are not able to outperform the stellar 100% Indian Equities focussed MFs.


anil asked, Sir, I had bought 200 of Sangam India for 70 Rs. The price is 57 now. Should I hold or sell?
Madhusudan N Sarda answers, Sangam India as a company has consistently delivered good results. However the scrip hasnt received much response from the market for reasons other than fundamentals.


HANEET asked, HI SIR, IS IT THE TIME TO INVEST THRE MONEY IN MF
Madhusudan N Sarda answers, For MFs you always have the flexibility of investing in different time frames. If you are not comfortable with current market level distribute your investment to invest in 3 months time frame to mitigate any market risk.


sidk asked, Hi Madhu, I have Nagarjuna Construction 150 shares at rs 195 .should I hold or exit?
Madhusudan N Sarda answers, It is good to book partial profits at this level.


ateev asked, reliance communications?
Madhusudan N Sarda answers, RCOM has started aggressive Capex in CDMA and GSM space. this holds good for the long term. Also RCOM management has indicated that the company is in the process of spinning off its tower business (RTIL) and Flag telecom (submarine cable business) in the next 3-6 months. We expect these spin-offs to lead to value crystallization and act as a catalyst for RCOM share price appreciation.


dasdasd asked, Will DLF touch 700 in near future may be 1-2 months?
Madhusudan N Sarda answers, One should not look at DLF for a short term perspective since almost majority of its plans are yet to be implemented. Keep it as a long term stock to derive its real benefits.


venu padarthi asked, Hello Sir,In the current scenario...is it profitable to invest during these high bullish market..how far do you think sensex can scale ...lets say in 5yrs ?
Madhusudan N Sarda answers, Markets are neither bullish nor bearish. They always reflect some fundamental or technical reality. One can argue that markets are sentiment driven. In that case the sentiment seems to be positive for coming five years considering India's stellar economic performance. Instead of focusing on the entire markets one should focus on one's investment needs and suitably invest in good outlets/scrips after analysing the same.


vinayk asked, what is your advice for JINDAL STEEL stock for 4-5 years
Madhusudan N Sarda answers, The iron ore mine in Tensa has an expected remaining life of 10 years with annual production of 1.2m tonnes. This has a landed cost to the company of Rs600/t. The coal mine in Chhattisgarh produces 6m tonnes of coal pa, of which 2m tonnes of good quality coal is used for sponge iron production (landed cost: Rs1,000/ton) and the rest for power production (landed cost: Rs350/t). The company has also been allocated a new coal mine of 100m tonnes. The company's current EV of US$2,945m does not adequately capture the replacement value of its assets of US$4,266m.


inder asked, hi,what is your outlook for tata steel
Madhusudan N Sarda answers, Tata Steel has become the sixth largest steel producer in the world post its acquisition of Corus, with local production in as many as 14 countries. We believe that the combined entity is rightly positioned to leverage Tata Steel's low cost advantage in primary steel making and Corus'high-end product portfolio.


ITStocks asked, What are the target prices for TCS and Infosys in 3 months ? Can we expect 40% returns ?
Madhusudan N Sarda answers, you have a highly ambitious returns target. 40% returns should not be expected on those two counters in 3 months.


sidk asked, HI Madhu, any thoughts on Tech Mahindra, is it a good buy at Rs 1500?
Madhusudan N Sarda answers, TechM, a niche IT services provider in the telecom space, is a key beneficiary of the huge IT spend by British Telecom (one of the owners of TechM) and AT&T and Alcatel (with whom it also has strong relationships). TechM is in a sweet-spot in a buoyant market. While we are cognizant of the risks of a less diversified, domain-focused model such as TechM's, we believe that significantly higher growth will result in a valuation premium over comparables like Satyam and HCL Tech.


ITStocks asked, Will TCS takeover IBM and Infosys over CapGemini
Madhusudan N Sarda answers, NO, each one of them have their own space and will grow together.


Aditi asked, Dear Mr Sarda, I am a widow with two children (aged 12 and 15) to look after. My husband left us some money of which I can invest up to Rs 2.5 to 3 lakh. Can you tell me some good stocks that I can put my money into so that I can utilise them for my sons' future? Will be really grateful...
Madhusudan N Sarda answers, I recommend you to invest your money wisely by suitably allocating the money that you got. A good combination would be: MF - 35% Equities - 65% - Trading 15% (with a reputable broker) - Front Line Stocks: 35% - Growth Stocks: 15%


ritesh asked, i think this market is over no more to invest? today all share have reached to near all time high and i dont understand is there any correction? if yes then when it is? do u think is this market suitable for BSE to shout? if you think wrong then i m sorry for it....
Madhusudan N Sarda answers, Ritesh, I advice you not to react with sentiments and continue studying good things to invest at any point of the market.


kamw asked, Should i apply for CENTRAL BANK ipo?
Madhusudan N Sarda answers, With a strong branch network Central bank is in a good shape to leverage the credit growth. Amongst the current crop of IPO's this looks a very good bet considering that its not too much hyped about.


Viral asked, What do you think of RPL, for long term investments.
Madhusudan N Sarda answers, RPL is a big story unfolding in itself. Since most of its operations havent even yet commercially started, one should hold this stock for long term for good returns.


SANDY asked, Hello Sir, what is the outlook for Punj Lloyd in the medium term?
Madhusudan N Sarda answers, PL is one of India's largest engineering and construction companies. It comes close to L&T in terms of services offered. It also trades at a discount to L&T, due to the latter's size and niche capabilities. It is justified for PL to trade at a premia in comparison to domestic peers barring L&T, due to the quality of services it offers and its scale of operations.


samar asked, Hi Madhu, I want to know about the short term courses AVAILABLE for NSE/BSE. Could you provide some detail or link from where we can get more info.
Madhusudan N Sarda answers, check the respective websites.


shweta asked, what is opinion abt Unity infra
Madhusudan N Sarda answers, Though a recent price run in the last 2 months the company looks fundamentally more strong and the price still does not cover the complete value of its assets. holdings and subsidiaries.


dasdasd asked, does Maruti Udyog has upward trend now?
Madhusudan N Sarda answers, Currently there seems to be no trigger in the Auto space for the coming months.


iii asked, what is your advice for tata steel & DISH TV
Madhusudan N Sarda answers, Tata Steel has become the sixth largest steel producer in the world post its acquisition of Corus, with local production in as many as 14 countries. We believe that the combined entity is rightly positioned to leverage Tata Steel's low cost advantage in primary steel making and Corus'high-end product portfolio. DISH TV is highly susceptible to competitors, market response and government regulations. So one should look at different stocks in the Media and Ent space.


NehaJain asked, Where do you think the market is headed now? IS it a good time to invest in the market or should one wait for some time?
Madhusudan N Sarda answers, One should never try to time the markets. Instead one should focus on the company's current and future business potential and correlate it with the valuations at which it is available. Stocks with strong business potential will yield value in any condition of the markets.


asd asked, which sectors look bright in stock markets in india to invest...
Madhusudan N Sarda answers, Power, Cap Goods, Pharma and Telecom


rajni asked, i am getting profit of Rs. 30000/- on BHEL at current price.hold or sell?
Madhusudan N Sarda answers, BHEL is in the most promising sector of the coming times. However one can always book partial profits on days where markets are rising.


Madhusudan N Sarda says, Thank You all for participating in this Investor Chat. Happy Investing !!