For the second time in a week, Sensex lost over 500 points on Wednesday. On Friday last, it slipped by 542 points. On Wednesday, it tanked by 615. The market breadth was extremely bearish.
Where is the stock market going? Will it rise again? Or will it crash further? What should a small investor do in such a scenario? Should he hold on to his stocks or sell them? Should he buy stocks now or stay away from the market?
In an ahour-long chat market expert Pranav Sanghavi answered to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon everyone. Tough times for investors as the markets are tumbling and over 500 points down today. Let's begin.
RAJANS asked, what is the feature of BHEL i purched @ 1250
PRANAV SANGHAVI answers, at 2007-08-01 12:03:39I think the capital goods sector will out perform the market over the next couple of years. Their results have shown steady improvement in both top and bottomline. BHEL and L&T still remain my favourites in this sector.
shewalkar asked, sir, one month before i have purchased visesh infotech 1500 @ 33.5. do i hold this.
PRANAV SANGHAVI answers, I think you could book a loss and wait for the markets to subside before investing back into the markets.
pratik asked, what to do in the market now.shouls one buy stocks like l and t,bhal,reliance,sbi.
PRANAV SANGHAVI answers, You could buy in a pyramid fashion but only good quality frontline index stocks like the ones you mentioned. But buy in parts. If you want to buy say a 1000 shares you could buy say 10 to 20% today.
SGK asked, Hi Pranav What is your opinion about SBI & DLF ?
PRANAV SANGHAVI answers, I think both will be strong performers in the times to come. In the very short term they may correct along with the market.
PS asked, Hi Pranav, Can I enter Bhel aat current levels ?
PRANAV SANGHAVI answers, I would wait for the markets to stabilize before taking new positions but you could buy in small parts and not the whole quantity that you wish to buy.
vijay asked, is it a good idea to buy stocks now or wait for sometime ?
PRANAV SANGHAVI answers, As I have said in my previous two chats, that a correction was due. This time it is becuase of global reasons more than internal reasons. But I would wait for the markets to stabilize. If you are a 1 to 2 year investor you could buy small parts of good quality stocks.
vandana asked, Hi Pranav , what abt Bharat forge and Pratibha Industries. I can hold on for at least 5 years
PRANAV SANGHAVI answers, Hi Vandana, Bharat Forge has not been performing in cohesion with other metal stocks. With a five year outlook I would rather look at a Sail or Hindalco or Tisco.
PS asked, Please suggest some good infrastructure stocks.
PRANAV SANGHAVI answers, DLF, IDFC, IVRCL, Unitech, GMR are just some of the players.
harjot asked, hi...can i enter reliance 1831 ans sbi now?
PRANAV SANGHAVI answers, If you are a short term trader I would not suggest to enter now as the markets do look to remain volatile for some time. If you are a longer term player you could start buying in pyramid fashion.
Sharmag asked, please tell me about ranbaxy,subros,itc,bajajhnd. shoud i hold these stock or sell.
PRANAV SANGHAVI answers, If you are a short term player you could book some profits on any rises. If you are a longer term player then you could surely hold.
Vij asked, Hey Pranav.. Where is the market acutally going??
PRANAV SANGHAVI answers, Hi Vij, In the short term I had mentioned a couple of chats back that a corection was due. But on a longer term note I think the markets will steadily rise.
Aayush asked, hi pranav! i m intrested in buyin RNRL at current levels, shd i buy?? wts da fut propect fr dis scrip
PRANAV SANGHAVI answers, You could look at it with a 1 to 2 year outlook. It should give you decent returns.
PS asked, Can I enter ICICI bank at current levels, with a 1 year outlook?
PRANAV SANGHAVI answers, yes you could.
Money asked, What is the future of Celestial labs and Meghmani organics?
PRANAV SANGHAVI answers, Sorry, I don't follow either of those stocks.
PS asked, Is DLF the best bet in Infrastructure ? What is a good P/E level in infrastructure that I can enter in ?
PRANAV SANGHAVI answers, It is one of the largest player in the organised real estate sector. And P/E levels of 14 to 15 would be a good buy.
karan asked, Hi Pranav, sir the much anticipated correction has come, what are your expectations about this corrections and what would you like to pick at this moment? would you like to wait further or go in now?
PRANAV SANGHAVI answers, hi Karan, yes I think it is the much anticipated correction. I think now it has corrected nearly 10% from its highs. I would still look at the frontline index stocks who are growing their bottomline by over 20% annually. You could buy in parts but markets will remain volatile surely in the short term.
varsha asked, hi, which will be better option - L&T , reliance power, abb as new entering for long term
PRANAV SANGHAVI answers, I think L&T, Rel Power would be good bets.
PS asked, Shall I enter Bharat Electronic at these levels ?
PRANAV SANGHAVI answers, You could with a 6 to 12 month outlook.
samir asked, what about ITC?
PRANAV SANGHAVI answers, Longer term they should perform. You could look at a 20% return over 12 monts.
s asked, Hi Pranav, Can I enter Rel Ind, Reliance Comm and Bharti at these levels?
PRANAV SANGHAVI answers, You could buy in parts. As markets will remain volatile in the short term. One should not get perturbed with short term corrections like the one we are witnessing.
sikd asked, hi Pranav, I have Tech Mahindra at Rs 1800, what should I do?
PRANAV SANGHAVI answers, I would suggest not to panic with the current correction. If you are a longer term player you will see your rates in the future.
shankar asked, Sir, what is the reason for ITC Share price not going up since it fell so down about 13-14 months back? Shall I hold on or not? What about Sobha Developers? Will it go up in the near future?
PRANAV SANGHAVI answers, ITC is growing at a steady 18 to 20% annually. I think you will see that kind of appreciation in the stock price too.
vijaivijai asked, What should we do when the stock market crash ? sell or buy ? (I am new toStock Market)
PRANAV SANGHAVI answers, I think you could look at quality frontline stocks to buy with a 6 to 2 month outlook. But do consult a broker or a qualified advisor.
subrata asked, Where is the SENSEX heading now ?
PRANAV SANGHAVI answers, In the short term we will see some more volatality like we have seen since last friday. Markets fell 500 points one day and gained most of it over the next two days and then today nearly 550 points down. But in the longer term I see the markets rising.
venkat asked, hi. i bought one lot SAIL at rs 150 in aug futures. Daily sail price is getting reduced. How much time it may needs to come again to rs 150?
PRANAV SANGHAVI answers, It will take some time.
RAMUUU asked, Hav been possessing Chambal Fertlisers, 300 nos. @ Rs.41 for quite sometime, but d stock has been hovering around 35 for a yr. now.Is it best to sell and exit??
PRANAV SANGHAVI answers, A lot of institutions are also holding this stock. Plus the budget is going to benefit fertilizer companies. So you could surely hold.
anand asked, can i buy IFCI now ?
PRANAV SANGHAVI answers, Yes you could with a one year outlook.
anuj asked, What are the stocks to buy at this level
PRANAV SANGHAVI answers, I would look at frontline stocks like RIL, R Comm, L&T, SBI, IDFC etc.
Prashant asked, Hi Pranav, Is it because of rising Rupee that FII's are pulling out
PRANAV SANGHAVI answers, In fact the FII's benefit with the rising Rupee as when they bring in funds they sell the dollar and buy Rupee. If the Rupee depreciates then when the buy the Dollar in the future they will have so spend that much lesser Rupees for the same amount of Dollars. There are worries that most of the leading players int eh financial markets who are active in India could be affected by the Sub prime lendign to the housing and the housing mortgage sectors in the
daspeedee asked, which will give better returns RCOM or BHARTI ?
PRANAV SANGHAVI answers, I think both are performing exceedingly well but I think RComm might just out perform Bharti at least in the short term.
ravisilk asked, i want to buy unitech at this point shall i enter into the share or i have to wait for some time
PRANAV SANGHAVI answers, I would buy in small parts on dips like today.
uday asked, Hello, almost within a week, market has started showing unstability so in such circumstances what should one do with his/her shares?
PRANAV SANGHAVI answers, If you are a longer term player just hold on to them and not sell them in panic. Especially the good stocks. Stay away form short term trading too.
romit asked, whats your view on RCOM share for 6 to 12 months perspective?
PRANAV SANGHAVI answers, At least a 30% return from current levels.
daspeedee asked, WHAT CAN BE 6 MONTH TARGET PRICE FOR IFCI ?
PRANAV SANGHAVI answers, I think it has potential to test the 85 levels if the stake sale talks gain momentum.
PradeepK asked, Is it worth to buy BHEL, GMR Infra at this point?
PRANAV SANGHAVI answers, Buy in parts. But yes you could look at both of them including L&T if it falls further.
Latha asked, What is future price target for DLF , I have 90 shares
PRANAV SANGHAVI answers, I would hold them for the next couple of years. You could see very handsome returns on the stock. They have given a net profit figure of Rs. 1500 crore for the June quarter. If you multiply that with 4 you get a whopping figure of Rs. 6000 crores for the whole year. That would give it a EPS of I think around Rs. 40.
vinu asked, Good afternoon sir, as you might be aware, sensex sinked today and came to around 15000 mark. Is this trend going to continue and if it does, till what mark will it go down. When will the sensex rise again after the crash.
PRANAV SANGHAVI answers, If you follwed my previous two chats I had mentioned that the markets could correct 7 to 10%. I think those targets have been achieved. So the markets have little more room downwards before recovering.
ravisilk asked, i am having bhel shares 11 @1800 shall i wait
PRANAV SANGHAVI answers, Yes.
daspeedee asked, which shud give better returns in 6months /1yr DLF or HDIL ?
PRANAV SANGHAVI answers, I think DLF would be a better bet.
pmsrinivas asked, what is the market condition at the end of the week?
PRANAV SANGHAVI answers, It is very difficult to predict what the market will do over the next few sessions. We could recover a bit tomorrow before falling again. A lot of global factors are also affecting the markets.
prasad_l1 asked, hello sir iam holding satyam at 498 lelvel what to do now
PRANAV SANGHAVI answers, Hold on.
vimal asked, What will be future for Sundram clayton sahers please?
PRANAV SANGHAVI answers, I think in the longer term they will perform. But in the short term they could be hit with the correction.
Don asked, Should we enter for Rel Com. at this level. When do u see the stock will gain momentum?
PRANAV SANGHAVI answers, as I mentioned earlier, you could buy in parts on days of dips. I think once the markets stabilize R Comm should resume its upward move.
meena asked, can i abuy RPL at 110 level?
PRANAV SANGHAVI answers, I would wiat for dips and RPL is a longer term play.
AMIT asked, How do you see l& T is it right time to buy
PRANAV SANGHAVI answers, At times of corrections like this it is a good time to pick up good quality stocks as our country's economy has not turned around becuase of this correction. I think the capital good sector will outperform the markets.
gautam asked, i have got 50 shares of Cipla @208.60 . i can hold for next 6 months or so . what r the prospects of the same
PRANAV SANGHAVI answers, Their results this quarter have disappointed and if they continue this dismal performance maybe the stock may tumble further.
rajendra asked, what about Petronet LNG ? should we buy at Rs.62
PRANAV SANGHAVI answers, On a longer term basis yes you could look at it.
jain_amit1234 asked, hi. i hav invested in MF thru SIPs. due to market corrections, the returns are almost nil. Will sensex ever grow above 16000 or sink in the same manner as now ?
PRANAV SANGHAVI answers, SIP will reap you benfits over a longer term period. Yes the market could go beyond 16,000 but when is the question. If we get 2 more quarters of strong growht form the frontline stocks then yes we could see that figure early next year.
Don asked, Which sector is a best bet in current market senario?
PRANAV SANGHAVI answers, I think the Capital Goods and the Telecom sectors look to be the better ones.
ramdev asked, whats future of unitech after bonus issue? will it be less than 200Rs?
PRANAV SANGHAVI answers, In the short term it may. But over a period of time it will rise above that price.
om asked, Geojit will touch Rs. 115/- level in 6 months what do u think about it plz suggest
PRANAV SANGHAVI answers, The financial services stocks have been doing well. As the markets volumes are rising daily so are the profits of these companies. I think Geojit is no different.
lalsinghkaneriadubaiwala asked, hello !!!! Pranav !!!
PRANAV SANGHAVI answers, Hello.
Avineet asked, Where do you see the markets to be going from here..?
PRANAV SANGHAVI answers, Please refer my earlier replies.
ITstock asked, TCS and Infosys: Should we buy these diamonds today
PRANAV SANGHAVI answers, Only if you can have a 1 to 2 year outlook.
jain_amit05 asked, sir i wanna hold Praj Industries for 6 months. how good is an idea is this?
PRANAV SANGHAVI answers, I think it is a safe bet.
vineetha asked, Hi Pranav, When are the dividends paid off in a mutual fund? Is their any regular interval or does it depend on the mutual fund's policies.
PRANAV SANGHAVI answers, Hi Vineetha, most mutual funds declare dividends either monthly, quarterly, bi annually or annually. It depends on how the fund is performing, what fund you have chosen etc.
mokvin asked, What are your views on Mahindara & Mahindra , I have purchased at 800
PRANAV SANGHAVI answers, The auto stocks may not perform in the short term. Once the interest rates stabilize or move downwards which they should onver the next couple of quarters then the auto stocks should perform.
santh asked, I hold nelco,bajaj hindustan and arvind mills should i hold or sell these stocks...
PRANAV SANGHAVI answers, They may not perofrm in the short term. If you are in profits convert to cash and wait and watch before investing into the markets again.
nitin asked, sir, i have vishal retail's 10 share @ 655 what is target in coming one month ? and market is now down what will u suggest me invest or no invest ?
PRANAV SANGHAVI answers, I would recommend you hold on to the stock for atleast a year. The company has strong expansion plans.
ramesh asked, i had icici,l&t,educom solutions,dr.reddys,ril,rcl,rpl,glenmark pharma,swan mills,amara raja.plz advise on the above shares
PRANAV SANGHAVI answers, Its a good mix of stocks, hold on to them.
sona asked, can i invest in the NFO - JM Contra Fund??
PRANAV SANGHAVI answers, You could.
piyal asked, What about R-com at present value?
PRANAV SANGHAVI answers, You could buy in parts.
RahulKhanna asked, Hi Pranav. Does Wipro look attarctive after current fall from a long term view ? I think lot of Rupee appreciation has already been factored in. Give me a good pick in the INFRA space at current levels. Thanks.
PRANAV SANGHAVI answers, It looks extremely attractive unfortunately the Rupee looks to appreciate and unless they grow substantially higher than the estimates in dollar terms to mitigate the rise in Rupee the stock may stay an underperformer.
PRANAV SANGHAVI says, Well it has been great chatting with you all on a historic day like today. But I must leave now. Bye for now.
Chat with Pranav every week!