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'Worst is over for PSU banks'

August 01, 2006 15:23 IST
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Those who chatted with market expert Pranav Sanghavi on Tuesday expressed concern over the unpredictable state of the stock market and asked for investment tips. Here is the transcript:  

PRANAV SANGHAVI says, Hello and welcome to all. Lets begin the chat.

tulip asked, is investing in precisous metals better than investing in shares ?

PRANAV SANGHAVI answers
, Historically, Gold and the stock markets have always moved inversely. But this current bull run has defied that rule and for the firs time both gold and the markets have scaled new highs. But from an investors perspective one should break up their investible amount into various avenues like, stocks, gold, property, bonds and insurance for the safety.

Tutti asked, Hey!

PRANAV SANGHAVI answers, Hi

venkat asked, hello Pranav i am a fresher and would like to invest money into mutual funds.I have a budget of 100000 per month to invest in.Could you name 3 to 4 good mutual funds to invest in.

PRANAV SANGHAVI answers, I would need to know your age, your investment outlook, time frame and goal before I could recommend a particular MF. Do write in via email and I shall surely revert back with a few good suggestions. Thanks.

Nimesh asked, wat say on acc

PRANAV SANGHAVI answers, I would say hold on. All the cement companies have given excellent results and I feel they will continue to do so.

KAMLESH asked, WHAT ABOUT RELINCE PETRONET?

PRANAV SANGHAVI answers, I think you mean, Reliance Petroleum? It will start its commercial production in 2010 approximately. If you are a long term investor you could hold.

tulip asked, Your views about Mahindra Techmedia

PRANAV SANGHAVI answers, I think it has strong alliance partners and the performace looks good in the prospectus. I would invest in the company.

Ravi asked, Hi Pranav I need your views on Vijaya bank and TCS. Can you come out with some target price for this stock.

PRANAV SANGHAVI answers, TCS has been one of my favorites for the sime reason of its relentless performance despite its size. It has a very strong balance sheet to top that. Vijaya is a good mid-cap bank. You could hold on.

ram asked, Hi, what are your views on Aegis Logistics. It had gone up to 300 and has now dropped down to 130 range. Is it wise to invest further in the company considering a 1 year time frame?

PRANAV SANGHAVI answers
, Aegis has transformed its liquid chemical storage business in to other area like logistics etc. It has performed well after the changes also. In one year you could get a 15 to 20% return.

xx asked, What are your views on allsec technolgies ?

PRANAV SANGHAVI answers, I am sorry I do not follow that scrip so will not be able to help you.

KHAN asked, What do u suggest, should we play long or short for short term

PRANAV SANGHAVI answers, In the short term the markets will remain extremely choppy. I would not advise you to play in the market at all. Do your research and invest with quality stocks which were hit badly in the recent correction.

Amit asked, What are prospects of GMR Infrastructure Limited IPO wrt short term and long term perspective.

PRANAV SANGHAVI answers, GMR has some large projects in hand but you need to see if the valuation is right or on the higher side. The stock will have to prove itself in the longer term by giving a steady growth over atleast four quarters.

salma asked, how are you

PRANAV SANGHAVI answers, Hi Salma, I am fine thank you. How are the markets treating you.

aka asked, Sir what is the futuer of Reliance capital. Its book value is more than 1000/- it is in to many fast growing sectors.

PRANAV SANGHAVI answers
, The investments made currently will bear fruit in the years to come. I would recommend a hold.

KUMAR asked, I HV 50 BOMBAY DYEING purchased @906.....shd I change portfolio??

PRANAV SANGHAVI answers, Bombay Dyeing is getting into construction and real estate development business which will bear fruit in future.

bankim asked, Hi, How the market movement looks & in which direction will it move. What will happen if FII starts flying away from India, how the market will react.

PRANAV SANGHAVI answers, I doubt the FII's will exit India in a hurry. THey strongly believe in the long term story of India and are investing keeping the same in mind. In general the markets should move up over the next 2 to 3 years.

gh asked, I am losing big time wih HDFC Top 200 fund. What to do?

PRANAV SANGHAVI answers, If you have invested with a longer term perspective then hold on. If not then you could switch to a few frontline growth stocks.

Syed asked, Syed from u.s. how's outlook of market for next week..IS it good to buy cement stocks at this level..my pt of interest is in Guj Ambuja cement also, how about ITC

PRANAV SANGHAVI answers, Guj Amb and ITC both are looking good even at current levels. Guj Amb has given some excellent quarter results. And ITC also have given good results. Both are good buys for the future.

ASHISH asked, HI

PRANAV SANGHAVI answers, Hi Ashish.

vinoth asked, I am holding 50 shares of siemens at Rs.940/-. Please let me on the target for the next 3 6 months. Should I hold or book loss?

PRANAV SANGHAVI answers, Simens is very strong in its sector and is performing well also. You could hold on. I think you will see your purchase price in the future.

sanjay asked, how ro career to stock market

PRANAV SANGHAVI answers, I did not understand the question. Do you mean how do you start a career in the Stock Market? Well you could take the basic and advanced training courses offered by the leading exchanges of India and now some Colleges like NM also offer an MBA in teh Capital Markets. Post that you could apply to various Brokerages for placements.

GAIPATEL asked, HELLO SIR, CAN I HAVE SOME IDEA ABOUT STERLITE IND I AM HAVING 500SAHRES

PRANAV SANGHAVI answers, Sterlite is a metal stock and its outcome will depend on the prices of metals in the future. If they are able to keep their costs lower they will do well.

SUdhir asked, Hi Pranav

PRANAV SANGHAVI answers, Hello Sudhir.

idbi asked, which company's share should i purchage, I m new in this field

PRANAV SANGHAVI answers, I would recommend you stick with frontline index stocks but please consult someone before you do invest.

saurabh asked, I am having 1000 shares of Mirza International. Should I hold these ?

PRANAV SANGHAVI answers, I am sorry I do not follow this stock so I woudn't be able to help you.

mahesh asked, Is it right to buy Reliance Petroleum shares for long term investment??

PRANAV SANGHAVI answers, Yes considering the commercial production is slated to start in 2010.

Soumya asked, Hi, uptill now I didn't invested money in stock market.But now I'm interested.Would you guide me is it better to start now when market is preety much crashed?How it will affect in future,lets say in 1 year?

PRANAV SANGHAVI answers, On a longer term the markets will perform well as compared to current levels. Investing in quality stocks on every dip is a good idea. But please study the stock before you do invest. And investing after this correction is a good time as many frontline stocks were affected.

saurabh asked, What are the prospects of Moser Baer ?

PRANAV SANGHAVI answers, It is one of the pioneers in its field in India. If it maintains its growth, the stock should do well.

arif asked, what r prospects of sonakoya steerings & Cipla?

PRANAV SANGHAVI answers, Sona Steering is in the auto ancialliary business and it should do well as the automobile sales are growing in our country. Cipla is a good midcap pharma stock. They recently had some products approved by USFDA which will benefit them in the coming months.

sadanand asked, ITC will be increains within a month let me know

PRANAV SANGHAVI answers, ITC on a longer term has good prospets. It has created a huge cash kitty for its foray into the Hotel business also. Cigarette remaining to be its cash generator. They have performed well in the FMCG sector also and some of their brands are fast gaining market share.

Dilpreet asked, Hi Mr. Sanghavi.... what do we expect for RPL in next two years.

PRANAV SANGHAVI answers, Hi Dilpreet. I have answered various queries on RPL please refer to the previous relies or the earlier chat transcripts, thank you.

kin asked, my portfolio is holding itc,ashok leyland,ntpc,sail,rpl,infosys,tcs,cipla,ivrcl. so kindly tell me which one should i hold and which ones should i sell. n how is my portfolio in general.

PRANAV SANGHAVI answers
, You have made a good aggregation of diversified stocks. Hold on to all.

Rakesh asked, hi, In this high market, In which share small investor has to invest.

PRANAV SANGHAVI answers, In quality frontline stocks whose valuations don't justify the prices. Also one could look at some of the good midcap companies who got hammered the most in the recent correction.

shilpa asked, What is the sell target of Bank of Baroda

PRANAV SANGHAVI answers, It totally depends on the investors outlook and time frame for their investment in relation to their acquisition price.

shyam asked, Hi Mr sanghavi...what stocks wud you recomend for midcaps

PRANAV SANGHAVI answers, Praj Industries, MTNL, Allhabad Bank are just some of the stocks you could look at. There are lots more but only invest in quality midcap stocks.

mathews asked, I have to put 3 lakhs on equity long tem beyond 3 years---pl suggest five shares where i can invest.will you?

PRANAV SANGHAVI answers
, I have recommended a few stocks in my last chat please refer to the same.

ajay asked, Hai,i am ajay.i am having 1000 shares of SAIL @55.00.What should i do either sell or hold fuether?

PRANAV SANGHAVI answers, Hold on as th esteel demand shall not subside but only increase in the future.

nav asked, hi im havin 100 GTL shars @ Rs 144...and 50 Bharat forge @ Rs302...how r the prospects

PRANAV SANGHAVI answers, I am not a GTL fan but I like Bharat Forge and you could surely hold that.

CHANDAN asked, HI MAY I KNOW THAT SHARE MARKET

PRANAV SANGHAVI answers, I am sorry I didn't follow your question.

ashishjain asked, Is the worst over for PSU banks? Iam holding allahabad bank from the past 6 months which i purchased @83. Will it reach the same mark again?

PRANAV SANGHAVI answers, Yes it should cross that rate in the future.

CHANDAN asked, MY ID.CHANDAN_3212@REDIFFMAIL.COM

PRANAV SANGHAVI answers, I shall reply your query in a few days.

abhijit asked, What is your view on Mphasis BFL?

PRANAV SANGHAVI answers, You will have to wait and watch as it is integrating itself with EDS and will have to watch its performance over the next few quarters.

anish1 asked, My portfolio has ITC,Dabur,RPL,BASF,Tata Steel,Gujarat Ambuja Cement & SAIL..I do not require money at this point.Should I hold on to all this or is there any stock that I need to sell

PRANAV SANGHAVI answers, Yes you have made good choices, you could hold on to them.

chitiz asked, Hi i have around 10000 to invest inshare market suggest me wich share i should go for

PRANAV SANGHAVI answers, Pick up a couple of front line stocks whose valuations still dont justify its rates like SBI or an ITC.

Rahul asked, How does, IT market in India will shape in the forthcoming days? Will the indian IT compnies follow the similar kind of boom?

PRANAV SANGHAVI answers, IT sector has performed well in the past and I feel it will ocntinue to do so. Atleast the frontline companies will like Infosys, TCS, Wipro and Satyam.

Raja asked, Hi, your view on DECAVI stock? Will it cross 150 mark ever :-(

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

Murali asked, Many funds like FT Prima are underperforming the market Is it still good for investment

PRANAV SANGHAVI answers, I would need to study the investments of the Fund for me to answer your querry. Leave your email ID and I will revert back.

Murali asked, what is Technical level for ICICI bank to get out of stock from present level

PRANAV SANGHAVI answers, Unfortunately, I am not a technical analyst but I rely more on fundamentals. To me ICICI Bank is a good investment for long term even at current levels.

jayesh asked, what is the prospect of sterling biotech and geometric software.i had sterling biotech qty-200no at rs 120/-&geometric software qty-200no at rs rs 80/- should i hold it,buy at dips or sell it

PRANAV SANGHAVI answers, I would suggest you switch to better stocks.

sumit asked, what is the future of unitech?

PRANAV SANGHAVI answers
, Just today there is a short article in The Economic Times. Go through that to get a fair idea. It looks to have good prospects for the future considering its plans.

SS asked, What is the future of IVRCL, Nagarjuna Constructions and Reliance Petroleum?

PRANAV SANGHAVI answers, For long term all seem to be good. I like IVRCL.

vinoth asked, I have 500 shares of Ashok leyland, what is the prospectus in the next 6 months

PRANAV SANGHAVI answers, The have performed well in the last quarter and sales have gone up. I would hold on as the automobile sector is booming. Keep a watch on the sales number in terms of units sold for the last 4 quarters and you will get a trend.

Prashant asked, How long will this rally last?? Is it just a temporary pullback?

PRANAV SANGHAVI answers, In th eshort term there could be another pullback (correction) but longer term if the companies keep performing and giving results as they have for the June quarter, I think the markets will do well.

pankaj asked, Dear Pranav, how can I trade online without paying any brokerage to any broker? Cuz, I'd wish to avoid paying huge amt. of brokerage.

PRANAV SANGHAVI answers, Well for trading online or offline paying brokerag cannot be circumvented. But I have heard Reliance Securities which is soon to launch nationawide is going to offer trading at a flat fee per month. Keep a lok out.

manohar asked, what about GMR IPO is it good to buy

PRANAV SANGHAVI answers
, Longer term maybe yes, but I feel the price is a bit on the high side.

Mohit asked, I've invested in Shyam Telcom at 58.50. This stock is temporary suspended due to some reorganisation. What is the future of this stock?

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

Hari asked, How will the bank stocks perform in near future...I have 200 shares of syndicate bank, 300 shares of indusind bank and 100 shares of dena bank...all these stocks are down. Let me know how long i have to hold these stocks?

PRANAV SANGHAVI answers
, All the PSU banks wer doing well last few days. Longer term, if they manage to keep their NPA's in check they should do well.

sanjayb asked, i have 500 SBI @945/-. Should i book the loss or wait for appprox. what time ?

PRANAV SANGHAVI answers
, I would recommend to hold on as it is grossly undervalued.

ravirattihalli asked, Hi Pranav Good morning... I have bought shree digvijay @ 26.25 today. I hope its a stock. Please let me know what would be the best selling price. and how long should I hold this stock. -- Ravi

PRANAV SANGHAVI answers, Dig Vijay is in the right segment that is cement. But I woun't be able to help you on recommendation of the future price to sell. It will be totally your call as to what price you wish to exit.

priya asked, Hi! I have five hundred shares of SBI Home Finance . How to sell them? Or, What to do with them?

PRANAV SANGHAVI answers, Hi. With the housing sector booming and interest rates possible firming up, I would hold on.

Sri asked, Hi pranav, whats your market outlook by the end of the year?

PRANAV SANGHAVI answers, THe markets will be higher than current levels. I will stick my neck out and say it could cross 12,000 also.

Laxmi asked, Hi! I have five hundred shares of SBI Home Finance. What to do with them? How to sell?

PRANAV SANGHAVI answers, I just answered that query could you please refer.

Swati asked, hi...i hav jus started workin. m 22 yrs in age and new to investing in equity.... can u plz suggest some good stocks with the horizon of 3 yrs. .....nd some stocks with the horizon of 10-15 yrs.

PRANAV SANGHAVI answers, Hi, I would recommend you invest a fixed amount through SIP route. If you wish to invest individually, then stick to frontline stocks in the IT, Pharma, Cement, FMCG, Diversified sectors.

prashantrana asked, Bought Bajaj Hindusthan @402 Should i hold or book loss

PRANAV SANGHAVI answers, The sugar sector performed exceedingly well over th last year and a half or so. You will need to see the demand, and the prices of the sugar commodity. But they are also planning on a huge foray into producing Ethanol which is a sunrise industry and could augment its revenue and profitability. You could hold.

vinoth asked, I have 20 shares of SBI at 870/-. Should I book loss or hold. What is the target for the next 4 months

PRANAV SANGHAVI answers, Hold on. You will see better prices of SBI soon. They are also planning a stock split and a Rights Issue.

VISHU asked, i purchase 150 shres of tisco @ Rs.475. what will be my selling rate? also i get share of jagran prakashan frm IPO @ Rs320. when i sell these shares

PRANAV SANGHAVI answers, Selling TISCO will depend on your investment outlook, in the sense what was your profit target. If you had a 5% return in mind you could sell right now. If you were looking for a 30% return you could hold.

Mohammad asked, Hi Pranav..i have 100 shares of piramyd retails @168 Rs. i am in big loss. what should i do??

PRANAV SANGHAVI answers, They are due to receive a huge sum form the Khitij Fund for their Tardeo property and also have big plans for setting up malls around the country. I would hold on.

suman asked, Hi Pranav, I am having 350 shares of Satyam Computers @560. Should I hold or sell

PRANAV SANGHAVI answers, Hold them.

fd asked, How do you justify the current PEs of many companies when all economic pointers dont point to (at best) more than 5 to 6 years of consecutive growth? The market seems highly overvalued. What is your opinion?

PRANAV SANGHAVI answers, The market was highly overvalued in the month of April and thus we saw a correction. Now I feel the markets will move in sync with global trends and corporate performance.

BOBBY asked, PLS TELL US ABOUT MERCATOR LINES, TATA TELE , G.V.FILMS & PENTASOFT TECHNOLOGY, PLE HELP ME

PRANAV SANGHAVI answers, Mercator Line has shown good growth in its profits in the past. But shipping is a cyclical sector so you have to watch the frieght rates for inbound and outbound cargo. But the volumes will surely rise and Mercator is also looking to acquire new vessels in the near future.

msingh asked, i bought 1000 MTNL shares at 146, today it is trading at 139. How much MTNL share can go up from here and in hoow much time or shall i exit it

PRANAV SANGHAVI answers, You could hold on. It had recently crossed the 160 level which I feel it could touch again.

nagesha asked, Hi, there are 2 IPOs, Tech Mahindra & GMR Infrastrucutre, which one according to you is a good bet?

PRANAV SANGHAVI answers, I would go with Mahindra Tech. GMR could be acquired from the secondary market post listing.

harsha asked, bought ivrcl at 196 shall i hold

PRANAV SANGHAVI answers, Yes hold on.

kart asked, Hi Pranav, What is your view on Aftek Infosys and R Systems?

PRANAV SANGHAVI answers, Hi Kart, sorry I don't follow these stocks.

vishalshastri asked, Hello Pranav, I wanted to know your views on SRF(buy price = 220) and Thomas Cook (buy price = 580) on a medium to long term basis.

PRANAV SANGHAVI answers, Both are good buys for short term though the current price is around 180 I think not 220. Thomas cook is around 480. If you have bought at those rates you are losing a sizable amount, hold on to minimize your loss.

Mohammad asked, Hi pranav i have 100 shares of Reliance comm@290 and i wanted to sell it out in this month. so what is the best time to quit...

PRANAV SANGHAVI answers
, I would recommend you hold on till the IPO of Reliance Infocomm as they will convert each share of RCoVL to Reliance Infocomm.

PRANAV SANGHAVI says, Well as always it's been a pleasure chatting with you guys. Hope to catch you'll next week. Bye for now. And thank you once again.

Chat with Pranav every Tuesday!

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