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'Cement, pharma shares will do well in future'

July 11, 2006 15:33 IST

Readers' queries poured in from every corner during rediff's weekly market chat with Pranav Sanghavi. Here is the transcript:

PRANAV SANGHAVI says, Good afternoon to all.

kamlesh asked, whats medium term outlook for jet airways

PRANAV SANGHAVI answers, jet Airways is going through turbulent times. You should be watchful if you are looking to enter. They are facing stiff comeptition from the new players like Kingfisher. Plus the Sahara deal has gone sour.

ashu asked, good morning what's the record date of bonus (guj nre)

PRANAV SANGHAVI answers, I think it has yet to be announced. The dividend book closure has just gone in June.
Vinod asked, What is the Target for the Sensex ?

PRANAV SANGHAVI answers, What is the time frame. It could be 15,000 in 2008.

SriSriSri asked, Hi pranav, Is there any legal online website where we can buy and sell stocks of Indian Share Market ? Am a NRI residing in Singapore. Thanks a lot..

PRANAV SANGHAVI answers, Hi Sri. I find a lot of NRI's are still facing problems with investing in India. There are a lot of portals that do offer trading to NRI's. But I would recommend sticking to banks like HDFC and ICICI Bank. Not only do they have good online trading portals, they also have a dedicated NRI desk which takes care of all the regulatory and legal issues.

abc asked, I have purchased Tata Motors's share at Rs 791. When it will cross this level and when can i sell it?

PRANAV SANGHAVI answers, Tata Motors is a good long term investment. The only factor to watch out for is the prices of its components and raw materials. It should cross that in the future.

heman asked, Is it a good time to accumulate Nifty put options?

PRANAV SANGHAVI answers, It depends on ones view Heman. If you are bearish then you could.

Amrit asked, Sonata Software target/review? hold/buy or sell #present?

PRANAV SANGHAVI answers, I would switch to a frontline stock. How well do you know the business of Sonata and what they do? I would rather buy a TCS cum bonus with a long term view for exposure to a Tech Sector.

sunil asked, what's your view on Moschip semicondutor. UTI fund is holding 20 lakh share and this company will come in profit for the first time with loss of 600 lakh in last financial year

PRANAV SANGHAVI answers, I dont follow that stock. But UTI must have bought it with some story in mind.

nunna asked, hello pranav, i would like to buy the shares of Sanghi Industries Ltd, is it better to invest on that.

PRANAV SANGHAVI answers, I dont follow that stock, sorry.

hth asked, How is ICICI Prudential as a mutual fund option?

PRANAV SANGHAVI answers, Yes it is. But always look at the past performance and its current managers profile before investing in MF's.

hjh asked, I bought Franklin Templeton MF for Rs 1000 as part of SIP. The first month's statament shows current value Rs 977. Does it mean its value has gone down?

PRANAV SANGHAVI answers, Yes. It does. But SIP are generally bought with a longer term view. So you need to see its performance over a longer term.

shukla asked, hi pranav can i join ur firm becoz i know about stockmarket.

PRANAV SANGHAVI answers, You can surely send in your resume.

raj asked, Priyadarshini Spinning Mills Position in next 2 to 3 months

PRANAV SANGHAVI answers, I dont' follow this stock but most of the mills have large areas of land to be developed, you need to check if this company has. If it does then the price could factor in that benefit in the future.

TirthankarRoy asked, what is the future of RPL. @ almost the IPO price is it a good buy now?????

PRANAV SANGHAVI answers, I have given detailed replies to RPL in the past please refer to the earlier chat transcripts. Thanks.

chandu asked, Hi pranav,I buyed Allahabad bank 1000shares @Rs66.And day by day its declining should I hold them or sell them off.Thanx

PRANAV SANGHAVI answers, Allahabad Bank has given some good results and I feel it is a good midcap Bank. Hold on.

pramila asked, i am holding blue chip stocks viz hero honda,ongc hpcl bpcl since past 4 yrs, please advise whether i should sell these stocks now because i donot want to lose them from my portfolio. thank you.

PRANAV SANGHAVI answers, You must be sitting on a decent profit. If you need the money sell otherwise hold.

mt asked, I have bought 30 IL&FS shares at 123 Rs. on 23rd june Can you please advise what i should do now?

PRANAV SANGHAVI answers, It is currently below the price you have bought it. It is an infrastructure related stock so I would recommend hold on.

JasmeenSanghavi asked, HI..Pranav, I am holding IDBI 1000@90, Aftek Infosys 1000@ 78, RNRL 2500@ 35. Should i hold them or book loss. Regards. Jasmeen

PRANAV SANGHAVI answers, IDBI you could hold on. Aftek I don't follow. And RNRL could be switched to Reliance Comm Vent.

chandra asked, what is ur opinion about icici bank & kotak bank. which bank among the two is worth holding. I have 100 shares of icici bank which i purchased last year for Rs.500/- whether i should hold them or sell them it is quoted at Rs.490/-.

PRANAV SANGHAVI answers, Definately ICICI bank is a better option. Hold them.

pavan asked, Is it a good time to enter equity mutual funds?

PRANAV SANGHAVI answers, Yes it is.

santhosh asked, what about investing ranbaxy at this rate for six months .

PRANAV SANGHAVI answers, It could be looked at but there are various news that you should keep updated about like the family feud, its case related to patent infringment etc.

sunilm asked, what about pharma stock which is showing more promise for short term

PRANAV SANGHAVI answers, Pharma sector amongst other sectors should perform well.

vivek asked, what is future of MRF tyre, i bought in 3880, what to do

PRANAV SANGHAVI answers, Every year we feel now MRF will announce a bonus. But it never comes. The stock is fundamentally extremely strong. Have a look at the Balance sheet. On a very small equity its profits are huge.

santhosh asked, wat abt glaxo pharma as investment

PRANAV SANGHAVI answers, Its a good buy.

kk asked, what is the scope of growth of arvind mill i have around 100 stocks.

PRANAV SANGHAVI answers, Hold on.

JasmeenSanghavi asked, JasmeenSanghavi says, HI..Pranav, I am holding IDBI 1000@90, Aftek Infosys 1000@ 78, RNRL 2500@ 35. Should i hold them or book loss. Regards. Jasmeen

PRANAV SANGHAVI answers, I think I already answered this query.

techcalls asked, Hi Pranav, could you pls tell me whats the future of midcaps, particularly IVRCL, and plethico in Pharma space?

PRANAV SANGHAVI answers, Plethico I dont follow but IVRCL is a good hold.

ravikumar asked, What would be the market status for this week .I had invested 10 lakh in bajajallianz equity fund wheather i can stay in it or swift to cash fund please give me agood replay.

PRANAV SANGHAVI answers, I will have to look at the particular fund and its investment portfolio to give you sound advice.

sameer asked, hi Pranav, DO let me know about Arvind mills, I have 120 Arvind mills Shares at Rs. 90... What should be done....

PRANAV SANGHAVI answers, I just answered a query on Arvind mills a while back. Please check. I would recommend hold.

bingo asked, Can I pick up TCI at current prices?

PRANAV SANGHAVI answers, Wait for the results today. But it could be looked at. TCI is in a booming sector though.

shyan asked, I have 1000 RPL shares @ 74 avg, i can hold them max. till the year end, should i sell them now and move on to other scrips as lot of money is blocked here

PRANAV SANGHAVI answers, If you are looking to grow your portfolio I would recommend a switch to a growth stock. As RPL should start its commercial production in 2010.

Mariraj asked, How is going KAMDHENU and SOFTPRO to future? i have KAMDHENU 95 shares @ 68 Rs and Softpro 100 shares @ 48 Rs

PRANAV SANGHAVI answers, I am sorry I don't follow either.

Moni asked, Hi, what are the prsopects of investing in Infosys & Reliance industries shares

PRANAV SANGHAVI answers, Excellent buys/holds.

adfar asked, dear pranav sir pls let me knw future prospectus of universal cables. since i have bought 200 scrips @ 127 some three months before

PRANAV SANGHAVI answers, You could hold on. It is a good midcap stock which was hit in the recent downturn.

kdekappa asked, I Have gammon india 10 Shares @ 518/- And Biocon shares @ 450/- Now price low what to do?

PRANAV SANGHAVI answers, Hold on to Gammon. It is in the infrastructure business and recently has bagged some large orders. Biocon watch its performance over 2-3 quarters. It has dissappointed in the past by not meeting its profit targets.

SriSriSriSri asked, Hi pranav today I saw an article on Stocks mentioning that the stocks will go further down around 8500 and then it will rebound back? Do you think so ? What would be the possible reasons for that if its so ?

PRANAV SANGHAVI answers, Stock Markets are extremely volatile markets and as they say there are more factors to bring it down than up. But beyond a certain point the valuations will not justify a fall. At 9,000 levels there is some strong buying seen. Plus the see the FII figures over the last 3 years. The last two months reminds one of August 2004 times. And FII's have turned positive.

shyan asked, would it be reasonable enuf to sell wipro now, i have 150 shares @453,how long can i wait to book quick profits

PRANAV SANGHAVI answers, I would not recommend that for various factors. Firstly it has very little float in the market of close to 5% to 6% only. The rest is with Promoters and Institutions. Secondly it has a consistent track record of performance. There are more reasons which I could discuss in detail. So hold on.

ss asked, Pranav, Future of PNB??? or other banking stocks in 6-8 months horizon

PRANAV SANGHAVI answers, I think it ranks in the top three public sector banks. Hold on. But you do have to watch the interest rate hike and its retrospective effects. But PNB is definately a better perfoming bank.

rajansakpal asked, I have Uttam sugar 28 @ IPO what is feature?

PRANAV SANGHAVI answers, Sugar stocks have performed well over the last two years. I would recommend sticking to frontline sugar stocks like Balrampur or Bajaj Hind.

vishal asked, what is the future prospect of astramicro as the two missiles test were unsucessful

PRANAV SANGHAVI answers, I am sorry I don't follow that stock.

siva asked, What is the market outlook in shortterm, will it go up or go down.

PRANAV SANGHAVI answers, In the short term the markets should witness a consolidation phase where it should move within a range. Beyond that it could move up.

pamuruvasu asked, Hi Pranav,I would like to start purchasing some shares.Could you pls mention some good shares to buy?

PRANAV SANGHAVI answers, I have recommended a few frontline stocks in my previous chats. Please refer to the same.

Pankaj asked, I would want to invest say 100,000 Rs in Equity market for about 5 years without touching it. And then add about 10000 to this kitty on a monthly basis. Could you advise what scripts should I invest into considering my outlook is long term and do not plan to offload them but am looking at substantial returns. I was planning to put about 30% in Reliance Petro, about 20% in Reliance Industry, about 20% in L&T and balance 30% in either ICICI bank or Cipla (may be 15% each). Please advise on this mix or alternately suggest some scripts for my kind of investment plan.

PRANAV SANGHAVI answers, You could pose this question to me personally which I could answer in detail. In here, I shall try and answer it in short. I would recommend go with front line stocks. Break up your investment sector wise. Sectors which you could look at are, Software, Pharma, Infrastructure, Banking, Cement, Retail. L&T is an extremely good stock fundamentally. ICICI is a growth Bank with aggressive plans for the future. RPL will start production only in 2010.

ajtest asked, where would be hindalco at the end of this month..

PRANAV SANGHAVI answers, I possibly cannot predict with such accuracy or I would be competing with Bill Gates in terms of wealth amassed. But Hindalco is a good stock to hold.

ajay asked, i am holding nocil & petronet LNG in high price. should i hold it or book loss

PRANAV SANGHAVI answers, Hold.

taher asked, is 1800 good price for tcs to purchase

PRANAV SANGHAVI answers, If you have a 6 months to 1 year outlook yes. If it is short term you could buy on a dip.

praveen asked, Give me some long-term picks for investment

PRANAV SANGHAVI answers, I have given some stocks in my previous chats. Please refer to the transcripts. Thank you.

Sanjay asked, Hi, What do u thing abt Sundaram Clayton, I purchased it on sharekhan's recommandation, at 1200, should I add to the position at current rate of 870-900???

PRANAV SANGHAVI answers, It seems you have entered the markets at the peaks. If you have a longer term outlook you could. But consult your broker before you take a step as they must have recommended based on some asumptions.

ami asked, Your advice on Reliance Communication...good buy?

PRANAV SANGHAVI answers, Yes I have explained why in detail in my previous chats. Please refer.

ss asked, Please tell the future of Banking stocks?? in 8 months timeframe

PRANAV SANGHAVI answers, You have to watch Global cues like Fed Rate hike, the Central Bank of Japan's rate hike amongst other things. Even RBI is planning to hike its reverse repo rates soon.

Vikas Sharma asked, HI pranav. Which sector is you think is guood to invest now please tell me the future prospects of Cement and Pharma sector. Should we also take shares of B2 companies.

PRANAV SANGHAVI answers, Both the cement and pharma sectors will perform well in the future.

salman asked, future prospects of beml?

PRANAV SANGHAVI answers, It looks good.

salman asked, future prospects of beml?

PRANAV SANGHAVI answers, I am assuming you mean Bharat Earth Movers ?

Pooja asked, Goodafternoon sir... i have one stock Yash Paper @ 14 i want to ask is it use to hold this stock or not i also have Jindal st @ 107, Guj Amb. @ 110

PRANAV SANGHAVI answers, Jindal Steel and Guj Ambuja are good buys. Yash I dont follow but looks like a weak B2 stock. I would recommend switching to a frontline paper stock like Balkrishna or Ballarpur.

Deepak asked, Mr Pranav, can you tell me about future prospect of Thermax Ltd and Gujarat Ambuja Cements Ltd. I have bought it on Rs. 290 and Rs. 95 respectively.

PRANAV SANGHAVI answers, Guj Amb should do well in the future. You have bought it also at a good rate. Thermax you will have to hold for a bit to get into profits.

aquadeep asked, What's the growth prospects for Banking Sector, specially ICICI & SBI. I have 70 shares of SBI purchased at an average of 850.

PRANAV SANGHAVI answers, Both banks should do well. SBI is going at a very low PE. SBI is also the largest public sector bank in India. It should perform well in the future. There are also talks to split the SBI stock that also could help the spurt in price. ICICI bank is an aggressive growth bank and should do well in the future as it has done so in the past.

Sanjeev asked, Mr. Pranav, today Morgan Stanley has predicted about downfall in the market to 9,700 by this weekend. What is your opinion about this.

PRANAV SANGHAVI answers, Markets could fall in the short term. But longer term they look positive. There are various global and local factors to be looked at. The nearest being the Central Bank of Japans plan to hike its interest rate from its current 0% interest regime.

PRANAV SANGHAVI says, Well as always it has been a pleasure to participate with you guys. I am leaving for today but hope to see you all in the next week. Bye

Chat with market expert Pranav Sanghavi!