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'Don't panic, stay invested'

Last updated on: January 23, 2008 18:48 IST

On January 21, the Sensex tumbled by 1,408 points on concerns over American economy going into a recession.

January 22 was no different. Trading was suspended for an hour within minutes of markets opening when the Sensex touched 15,576.30 points, 11.53 per cent lower compared to Monday's close.

On January 23, however, the stock markets finally ended in the positive region, up 864 points.

Did you make losses during the current market crash? What strategy should you adopt to recover your losses?

Is this the right time to buy stocks? If so, which stocks and sectors should you concentrate on?

Market expert Pranav Sanghavi answered to many such readers' queries during an online chat on Wednesday. Here is the transcript: 

PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Regret the slight delay and let's begin.


PRANAV SANGHAVI says, Over the last few days we have witnessed unprecedented movements in the market. There was absolute mayhem and I feel a lot of retail confidence has been shaken. Our economy still remains intact and long term investors will only benefit. Such corrections should be taken as opportunities to buy or hold on to quality investments. Anyways, let's continue with your queries.

AMAR asked, WHAT IS THE FUTURE OF rnrl
PRANAV SANGHAVI answers,  at 2008-01-23 16:06:38RNRL had run up substantially and without some solid reasoning. I would say it will run up a bit as it has corrected over 50% from it's highs. But to regain its old highs the stock will surely take time.
may asked, hi pranav, I had bought yesterday omaxe @201/-, Powergrid @86/- and RNRL @86/-. Should i book the profit or stay invested
PRANAV SANGHAVI answers, If you are an extremely short term trader you could book profit as one more small correction could take place but otherwise if you are a long term investor you could surely hold on. You have made a wise decision an bought on a day the markets were really down.
satish asked, can i buy Cairn India for 194
PRANAV SANGHAVI answers, I would rather look at other frontline power stocks like NTPC, REL and Tata Power.
sajid asked, What is the future of RNRL,RPL,NTPC, Ihave feb future of all. I have also lost 1.7 lakh during alst 7 days.
PRANAV SANGHAVI answers, You should have patience and hold on. you will surely see your prices in the near future. RPL and NTPC especially.
srinivas asked, hi Pravan...Good day!!! I have 12K for investing in stocks, May l pls ask you to let me know the stocks that I should be going for short/mid term.
PRANAV SANGHAVI answers, You could look at SBI, L&T, Sesa Goa, RIL and other quality stocks which have corrected over 30 to 40% but not recovered yet.
satish asked, can i buy petronet lng for 73 rupees
PRANAV SANGHAVI answers, I would rather look at some other midcap play like a Dena Bank at current levels.
niro asked, What is the fate of Reliance Power IPO?
PRANAV SANGHAVI answers, They have officially written to SEBI and the exchanges seeking permission to complete the allotment an refund process earlier than the stipulated time period. This will release around 40,000 crores of QIB money in the application into the markets or atleast a major part of it. The IPO should list at a decent premium despite the mayhem of last two days.
ratheesh asked, i have bought RPL 100@140 and 100@159, what is the future these shares. i plan for a short term investment
PRANAV SANGHAVI answers, If you are in only for the short term, you could book profit if this rally continues for the next few days.
LEKSHMI asked, SHOULD I BUY RNRL NOW
PRANAV SANGHAVI answers, There a ton of quality stocks with better assets and balance sheet than RNRL in the markets which have corrected equally sharply and are available at attractive valuations. I would look at those stocks rather than RNRL.
nareshbhoir2007 asked, i am having ril shares with me. should i sell it off immediately? please advice. also pl. let me know where or should i invest now at such situation? thanks in advance
PRANAV SANGHAVI answers, Definately not. The markets will bounce back and RIL being an index heavy weight will surely be a leader in the rally. Invest in quality stocks like L&T, SBI, DLF etc.
Santosh asked, Since Power Grid is at 110/-. What will it be heading with a months time frame. Which one is better NTPC or Powergrid? Thanks..
PRANAV SANGHAVI answers, You could easily see a 20 to 30% rise in Power grid over the next couple of months. Both are good stocks in the peer group but I like NTPC as it has proven its ability over a longer period of time.
rs asked, why is ACC falling so much. I have bought it at 960 Kindly advise
PRANAV SANGHAVI answers, All stocks were falling over the last few days. Some sectors were falling faster and higher than the others. ACC was no exception. You can surely hold on and don't panic and sell.
asim asked, what to do with teledata having 200 @68
PRANAV SANGHAVI answers, Hold on. Take the benefit of the demerger.
ALOK asked, HI PRANAV WHAT IS YOUR OPINION REGARDING MARKET IN ONE MONTHS TIME
PRANAV SANGHAVI answers, I think we will see more than a relief rally. If you are unsure of the budget's impact you could take the rally at higher levels to book profits.
RAJASHEKAR asked, HI PRANAV I AM NEW TO INVESTMENT CALL U PLEASE LET ME KNOW WHICH SHARE SHOULD I BUY
PRANAV SANGHAVI answers, I have mentioned quite a few stocks earlier answers. I will add BHEL, IDFC, NTPC, DLF, R Com, REL, Dena Bank, Uco Bank, ICICI Bank, HDFC Bank, etc.
VINAY asked, WHAT WILL BE IN SENSEX NEXT 2 DAYS
PRANAV SANGHAVI answers, If I could predict that I would be richer than Bill Gates. No one can predict markets accurately. Only give a sens eof things that can happen.
Mani asked, Hi, Why India Cements fell so much from 300+? Should I hold or Sell? Please advice.
PRANAV SANGHAVI answers, They did not give great results and they were below expectations. I think you could hold as the management said they expect a better last quarter. And I am bullish on the cement sector per se. I like Ultratech, Grasim and ACC.
Mani asked, I am holding Wipro & Infosys. Both are down10+%. Should I hold or sell?
PRANAV SANGHAVI answers, A coule of weeks back I had suggested to book profits in the tech stocks and switch to quality frontline growth stocks. That still holds true.
raaju asked, i bought rnrl for rs 95.00 .should i sell it or hold it ?
PRANAV SANGHAVI answers, I would start booking profits in parts in a couple of days if the rally continues.
ravi asked, hey hi pranav, pls tell me the future of RNRL and NTPC. i hav made gd shorterm gain on both of these today by over 49%
PRANAV SANGHAVI answers, I would surely start booking profits on every rise in RNRL in parts. NTPC I would continue to hold on.
mubsy asked, what shd i do with Reliance Power and Future capitol shares once they get listed.
PRANAV SANGHAVI answers, If you are bullish on the stocks hold on. If not sell on listing to book profits.
krishna asked, Hi pranav, I have NTPC@209, IDBI@130, Powergrid@130, Sail@230, RPL@200,UcoBank@39.Please let me know the future of these stocks,I have a longer timeframe of 1-1.5 years.
PRANAV SANGHAVI answers, With your timeframe you should not be perturbed by the carnage over the last couple of days. HOld on surely, you have a great mix of stocks.
parag asked, hi pranav u tell me wat specific sector is bullish for short term as if recently i invested money in midcap but it goes dwn so wat should i do nw whether t osell it ot hold sttcoks are hfcl 25,ispat 30,nag fertilizer 46 etc...??
PRANAV SANGHAVI answers, I am bullish on Engineering, Real Estate & Infrastructure, Banking and Telecom.
Radhagopi asked, I have invested Rs.8 lakhs in Mutual Funds in 2006 March. Whether I should hold this or quit and reenter at a later a date? I am a long term investor. Regards Gopi
PRANAV SANGHAVI answers, It would not be wise to exit at this stage. I would rather hold on to the investment. You have bought in at a time when the markets at that time were also around 20% down. So infact you should invest more at these levels.
kc asked, hi i hav badly affected by GMR Infra 100 nos @258/-& Omaxe 50@590/- How much time i will wait to cover up my lossess
PRANAV SANGHAVI answers, GMR could bounce back quicker than OMaxe. But you shall see your prices on GMR soon.
mubsy asked, I have ispat@70 and Jaiprakash Associates bought@400. Can i hold them for long say 1 yr.?
PRANAV SANGHAVI answers, Both were up substantially today. You can surely hold on to see profits. Ispat I would switch to a better stock once profit is booked.
hi asked, hi pranav i have just taken 1oo shares ongc at 1200 25 bhel at 2135 25 tata stell at 722 gtl infra 50 nos at rs 70 50 icici at 1150 rs per share am i ok i missed the chance yesterday as no money the above is ok
PRANAV SANGHAVI answers, Yes you have made good choices and you will see the benfit within a month.
srikanth asked, Is ir right time to invest in MFs?
PRANAV SANGHAVI answers, Yes. Their weighted NAV's could come down.
sundeep asked, 2 days back I sold airtel at 820 to buy GMR INRFA(156), RELCOM(610), TISCO(693) and yesterday I sold aitel(770) to buy ACC(663). what is a good stratergic decision. Please give your frank opinion.
PRANAV SANGHAVI answers, You have done what many investors have done, sold in panic. All are quality stocks and needed to be held on. You MAY see a mild correction again due to foreign factors but I doubt you will get an opportunity to buy at yesterdays levels again soon.
Anupam asked, Hi Pranav. I've taken CIPLA@257, WIPRO@605, TELCO@912 and POWERGRID @122. What's ur opinion about the future of these shares. Kindly advice. Thanks in advance.
PRANAV SANGHAVI answers, Besides Wipro the other stocks are good but you have Cipla at the higher end. It will take some time for the stock to see that level.
veer asked, why it hapeen recently sen..down?
PRANAV SANGHAVI answers, As I mentioned in my last chat there was initially the foreign factor and the Rel Power IPO effect which led the downfall. The Yen carry trade also saw some unwinding and then ofcourse the margin payment crisis and the pay-in crisis of the broker led to a further free fall.
lizy asked, hi Pranav: Please advise me on purchaseing some good midcaps for short term keep.
PRANAV SANGHAVI answers, I have mentioned quite a few in my previous replies please refer. Thank you.
somrajghosh asked, Sir, I am investing Rs. 3000 / month through SIP in Reliance Taxsaver. Should I continue or shift to some other fund.
PRANAV SANGHAVI answers, I don't think you should panic because of the last two days. On a longer term you should see decent returns from the fund.
kapil_c asked, sir i have 2200 rnrl @ 120 rs..should i book profits or wait for it to reach it previos highs...i can hold 4 another 2 months..pls advice
PRANAV SANGHAVI answers, I would start booking profits in a couple of days if the markets keep rising.
Rajesh_rai83@yahoo.co.in asked, hi pranav, recently we bought jay corp at 1160 wats the futhure for this stock?? also hindalco at 250,cipla 180 nd holdin from last 3 yrs so wat to do isn such stock?? Is it rite time u buy new stock???or still waitin for more correction to happen??
PRANAV SANGHAVI answers, Apparently there are report that a large SEZ project accross the bay from Mumbai city has been launched under a 100% subsidiary of the company. This should add substantial valuation to the company and that is why it was running up like it did. Both can be held. Hindalco especially even though it is a metal commodity stock.
dfas asked, is this right time to buy BHEL
PRANAV SANGHAVI answers, Yes. It is a fundamentally strong stock and witnessed substantial correction from its highs.
prasad asked, now that the market is very volatile in which type of stocks (Large cap,mid cap,small cap) share should an retail investor invest
PRANAV SANGHAVI answers, You should stick to the frontline index stocks as they will bounce bak first. Like in May 2006 we saw that the mid caps an small caps took far longer time to recover. This time thought some of the quality and actively traded midcap stocks should also bounce bak equally quickly.
Santosh asked, Hi Pranav... Can u please put some light on what is happening with Teledata and Silverline. Where are the headed towards??
PRANAV SANGHAVI answers, Silver line I don't follow so I won't be able to help you but I would surely stay away from the stock going by its past. Teledata is said to have gone in for a demerger plan and each investor should receive 4 free shares against every share held in the near future once the scheme is approved by the courts.
raviparamasivam asked, Hi,I wanted to do online trading and need some brokerage advice also.Which site will give very good service for this?.I applied for HDFC Securities.any other choice?
PRANAV SANGHAVI answers, Many of the top brokers like Indiabulls, Sharekhan, Angel, and so many more offer good research and trading facilities through the internet.
pranav c asked, Hi pranav, i have funds of 50K right now, i am looking for some midcap stock where i can get more shares and more profit in the long term, can you advise any such midcap stocks? thanks
PRANAV SANGHAVI answers, I have mentioned quite a few of them in my previous queries you could look at a couple of them like Dena Bank, IDFC, NTPC etc.
manikandaprabhu asked, Hi Pranav, Good evening. I have midcap stocks like jp hydropower, petronet LNG, Man Industries in my portfolio. All the above stocks are with loss of approx 20%. Should wait for these to raise 20% again or should I book loss. Also kindly please suggest whether I can hold these stocks for the long term. Thanks for ur valuable suggestion in advance.
PRANAV SANGHAVI answers, You will have to wait for a while beofre you see some profits in your account.
indrappp asked, Sir can I buy MICO @ 4000/- ?
PRANAV SANGHAVI answers, If you are a long term investor you surely could look at it.
VJ asked, What does one do with the highly speculative stocks like RNRL, RPL, TTML, ISPATIND etc? Can a trader buy this knowing fully well that it was the rise of stocks like these that cost the market meltdown in the first place?
PRANAV SANGHAVI answers, I would only go for RPL as it has solid asssets backing the stock. It will be one of the largest refineries in the region. TTNL still has given lack lustre results and is loss making. Even an Idea has given far better results.
jigar asked, hi, pranav i have invested around 3.5 lakhs in shares of diff companies like reliance, bhel, ongc, icici bank, reliance energy, reliance capital, rcom, rpl, rnrl, ntpc, power grid, power finance,l&t, mahindra and mahindra, tata steel,itc, ivrcl but now its up to almost 10% down from the level i buy them my current loss from 3.5 lakh is 40000 what should i do sell them off at tomorrows opening and buy them at lower levels or hold it for another few months as my around 1 lakh rs has been stuck in recent ipo so i couldnt buy more
PRANAV SANGHAVI answers, You have made a wise choice of stocks and I would surely hold on and not panic with the mayhem of the last two days. If you sit pretty on your investments you will surely see some decent profit over 6 to 12 months time frame.
sk asked, Hi Pranav, Can i buy L&T, ABB, Bharathi AirTel,RCom, and BHEL at current level (todays). Thanks
PRANAV SANGHAVI answers, Yes surely. All are quality stocks.
NITIN asked, SIR , I HOLD BURNPUR CEMENT 200 SHR ON RS 40 . WHT I DO? COVER LOWER PRICE ON RS 32 OR WAIT
PRANAV SANGHAVI answers, I donot follow the stock but I was a bit unnerved by the statistics of trading volumes and price of the stock on the day of the listing so I shall stay away. There were 150 million shares traded taking the price from 16 odd to 50 odd. Only 5% of the turnover resulted in delivery. So there is surely something amiss.
manividdh asked, WHAT RETAILERS SHOLD DO WITH CAPACITY AROUND 50k to 1 LAC???
PRANAV SANGHAVI answers, Buy quality frontline stocks which are 20 to 30% off their previous highs at current levels. Sit on them from 3 to 6 months and I am sure you would see profit. I remember When I started this chat column in June 2006. We had witnessed a simillar crash and I had then also mentioned that if you don't panic an hold on you will see higher prices. I still maintain the same evne though our markets have risen sharply since then because I still strongly believe in our economy growing steadily over the next few years.
kumar asked, i am beginner for buying and selling of shares. how can i proceed for that? tell the process?
PRANAV SANGHAVI answers, You need to first set up an account with a registered broker and also fully understand the dynamics of investing either through courses or your broker before you begin.
rams asked, Hi Pranav, After the correction(not crash!), would excessive speculation on FnO front would decline?
PRANAV SANGHAVI answers, I think a lot of the speculators have lost a lot of money and they will surely tread extremely cautiously now in the F&O segment.
rohit asked, What's your opinion about FII's. They inflate the market and vanishes whenever they want. Then re-enter….they just making money on our expenses…there is no tax too… how long it can go on ? is the time has come for the government to put some restriction on them????
PRANAV SANGHAVI answers, I have been saying it from a year that FII's unfortunately rule our markets due to the sheer size. I think we have finally a local source of funds probably which could equal that of the FII's this is in the face of the insurance sector. Government on their hands have tried to put a brake by barring P-Notes entry into our markets which accounted for nearly 70% of all funds invested into India.
sudhir asked, Hi Praveen just 3 months back i purchase mutual funds of rs 8 lacks and now i had great loss 1.10 lacks. what shall i do and how long it may recover or shall i withdrow the money put it into direct market. Please suggest me the way i am very distrub and confused.
PRANAV SANGHAVI answers, You will recover over a period of time. Do not panic and sell at a loss.
Rags asked, Does it make sense to invest in ETFs now to tide over the uncertainty or is it better to invest in Bluechips directly?
PRANAV SANGHAVI answers, I would go with Bluechips if you wish to make investments personally.
rakesh asked, hi, pranav, ihad brought powergrid@134 when i book profit
PRANAV SANGHAVI answers, I would hold on for some more time.
Akshay asked, Hi Pranav, my portfolio contains powergrid, hindalco, omaxe. Please suggest if i can accumalate any of the above shares on the current levels. Thanks...
PRANAV SANGHAVI answers, You could surely look at Powergrid.
123 asked, HELLO Mr PRANAV actual i have bought NTPC@ Rs280 almost 2000 shares, i have also bought S KUMAR @ Rs168 2000 shares , N 3I INFOTECH Rs 150 2000 shares. Wat should i do? Should i book loss or should i wait?
PRANAV SANGHAVI answers, Wait. Do not sell in panic. You will see new highs.
Lionshare asked, Hi pranav, can you please throw some light on Reliance IPO after the market crash. How it's going to affect??
PRANAV SANGHAVI answers, I have answered a simillar query in my earlier answeres in this chat, please refer. Thank you.
PRANAV SANGHAVI says, Well it's time for me to leave. I would still say do not panic if you are holding quality stocks. Bye for now and see you'll next week.

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