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Buying stocks? Listen to the expert first

April 17, 2008 14:05 IST

The Sensex opened the week with a negative gap of 114 points and slipped to a low of 15,573 - down 235 points from the previous close - due to negative cues from the global markets.

Buying in technology stocks, following the in-line numbers from Infosys, helped the index rebound into positive zone.

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

Such queries and many more are answered by market expert Pranav Sanghavi.

PRANAV SANGHAVI says, Good afternoon everyone and welcome to the chat. Let's begin.

canny11 asked, sir plz answer me i have 50 zee news at 56 Rs
PRANAV SANGHAVI answers,  at 2008-04-16 15:50:34I think they have given decent reults for this quarter and if they can continue their growth in both topline and bottomline we could see new highs. You could hold on to the stock.
riyas asked, Hi Pranav, What is your take on ABB, Bharath earth movers, Tech mahindra, Bharati shipyard and Omaxe. Shall i buy these stocks at the current level for 6 months to 1 year period. Thanks
PRANAV SANGHAVI answers, I think all the stocks that you mention are strong stocks and have a good growth potential. With the Tech sector not looking so bad with the better than expected guidance from Infosys I think Tech Mah should only benefit from the stock. ABB and Bharat Earth also have a good potential as the power sector and the heavy engineering and infrastructure related stocks should perform well due to the higher spending by the Government for building better infrastructure.
ganesh asked, Hi Pranav, Please advice me some of the good stocks that will return good returns for 6 months to 1 year from these industries - Shipping, Real estate, Power, FMCG, heavy engineering, Metals, Automobile. Thanks
PRANAV SANGHAVI answers, I think if you hold on to frontline quality stocks like SBI, RIL, L&T, NTPC, IDFC you should do well. Sector specific, I like GE Shipping, Varun Shipping, DLF, Unitech, NTPC, Power Grid, HLL, ITC, L&T, Siemens, JSW, Tisco, Telco and Mahindra & Mahindra.
harwanichander asked, hello...i have invested in jindal power and steel i have purchased 57 shares with price of 2053...can you tell me what i do...i thing there is some problem in steel price between govt and owners
PRANAV SANGHAVI answers, With the current negative bias on steel due to price reduction directive from the government on the back of inflationary scares, I would say the stock may look a bit weak in the very short term, but in the long term the stock has a strong potential and one could hold witha 1 to 2 year outlook.
Rajkumar asked, Sir , What is your Opinion on Assam Company can we hold. My Purchase Price is 41.
PRANAV SANGHAVI answers, I don't follow that stock closely but there was some news in the stock in the November and December 2007 euphoria of the markets. I have not heard anythign since.
bambam asked, HI Pranav.I have 110 TechMahindra at 900, 1200 nagarjun fertilizers at 70 and 280 IFCI at 110 . Should i hold ? Please advice
PRANAV SANGHAVI answers, Ifci and Nagarjuna you have got in at the higher band of the prices. These are liquid F&O trader friendly stocks and move in tandem with the markets only with a higher beta. You would have to hold on for a longer time to see any profits in these two stocks. Tech mahindra on the other hand should yeild you decent returns in 6 to 12 months.
naren asked, I bought RPL 100 @ 174,RNRL 100 @ 160,Powergrid 100 @ 111,Central bank 50 @ 110, Kaushalya Infra 100 @ 60,Rajesh exports 50 @ 132,Nandan exim 1000 @ 5.5, GVK power 50 @ 60,NTPC 50 @ 205,GMR Infra 50 @ 164,Praj Industries 200 @ 134.Please tell me whether i have to hold these shares or not.
PRANAV SANGHAVI answers, I like most of the stocks that you have mentioned and could be held with a 6 to 12 month outlook barring maybe Rajesh Exp, Nandan Exim and RNRL.
SRK asked, Hi there, Good Comapnies like RIL, SBI, ICICI Bank, ONGC, L & T, DLF (DLF debts are more than the companies net worth) having huge debts in their balance sheet, but companies like BHEL, Infosys don't have huge debts. As a long term invester, how these figure are significant during the investment. Thanks.
PRANAV SANGHAVI answers, All the stocks you have mentioned have extremely strong balance sheets and also a strong ability to deliver growths in the most difficult of times. So I would stick by all the stocks that you have mentioned in the current scenario.
saravanan asked, good evening what will be the price of spice communication & ikf technologies by month end.
PRANAV SANGHAVI answers, I am not a technical analyst so will not be able to help you with price targets, sorry.
SRK asked, Hi Pranav, Before buying stocks, what are the points we should consider apart from Companies balance sheets, EPS, PE ratio, Annual turnover, dividend, debt info.?. How the "Return on average equity" is calculated. How this info. is important when buying stocks?. Thanks
PRANAV SANGHAVI answers, I would also look at the quality of the management and their success shown in other ventures if any, their ability to complete projects and deliver growth as projected. I would also look at the sector the company is in and the sector's outlook keeping in mind the macro economic outlook of the country. There are variuous other factors that one could look at to make an investment consideration.
rohit asked, what do u say about Unitech & RPL ? To hold ?
PRANAV SANGHAVI answers, Yes both are holds but with a long term outlook of over 1 year.
Patrina asked, What is you take on Canara bank, Tata chemicals, Bajaj Holdings & Inv? Are you bullish on these stock for 6 months to 1 year time frame.? Thanks
PRANAV SANGHAVI answers, Yes I am bullish on the first two. I have not studied the latter so will not be able to comment.
SANJAY asked, I brought suzlon energy of Rs. 430/- per share of 100 shares what is prospectes of company
PRANAV SANGHAVI answers, I think one has to watch the next two quarter results and if they are able to maintain their profitability one cousl surely look at Suzlon with a long term outlook. With their foreign acquisitions recently I am fairly bullish on the stock with a 6 to 12 month outlook.
venusmail asked, I have GMR@164, Ispat@32, GVK@42, JPHydro@79, JpAssociates@248, IDBI@110, Escorts@100. I am a long term invester (1 - 2 years). Please tell me which of these to be hold?
PRANAV SANGHAVI answers, All the stocks you mention are trader friendly stocks where most people have taken short term position especially in the F&O segment. With a long term outlook I would look at quality frontline stocks I have mentioned in my preivous replies.
Sameer asked, Hi Pranav, Are "container corporation" and "SAIL" good stocks for investment 1 to 2 years.
PRANAV SANGHAVI answers, Yes definately. The only negative I feel they have is they are government concerns.
ssuresh asked, I have canara bank @275 yes bank@188.. what range can both go in short term..
PRANAV SANGHAVI answers, With the current inflation numbers the government cannot afford to cut interest rates. They may infact hike the CRR ratio and also the interest rates if required which may negatively hamper any banks growth. But with our economy growing at over 7% it may get neuteralised in the long term.
rpl asked, i am buy 30 share of hcc pls advice
PRANAV SANGHAVI answers, I would hold on to the stock. They have some large projects coming up over th enext 2 to 3 years which should yeild decent benefits to the company.
neer asked, hello pranav, i have 100 adani @ 650 shuld i wait or sell
PRANAV SANGHAVI answers, You will have to wait.
reerere asked, I have centurion bank, TATA Tele? Is it hold or not? Please advise.
PRANAV SANGHAVI answers, Tata Tele is still a loss making outfit. Till it turns around or there is some corporate news on the stock I doubt much else can happen to the stock.
sidhil asked, sir i have 30 renuka sugar @110.please advice
PRANAV SANGHAVI answers, Sugar stocks have been moving up gradually but I don't think that run will continue for long.
khan asked, Hi Pranav, Is our market already reached bottom? Are we expect any more downside in the market in the near future? If the sensex goes down, what would be your view on the sensex value. Does sensex go around 14500 points? Thanks
PRANAV SANGHAVI answers, If there is any drastically negative news either in the local or global markets we could touch the previous bottoms again. But with out any major news flow we may correct but marginally from here.
siddharth asked, how good is BPCL, NTPC AND IOC?
PRANAV SANGHAVI answers, With crude prices touch record highs and the opposition and the left government opposing fuel price hikes the refining companies like HP, BP and IOC shall have a tough problem on hands. NTPC I am bullish upon with a 6 to 12 month outlook.
arora asked, hi! Pranav I have 20 dlf @ 1050 with a long term perspective. should I hold or exit and invest elsewhere?
PRANAV SANGHAVI answers, I would buy at lower levels to average the stock. The current quarters numbers are very crucial for the stock as that will set the tone for its performance over the next few quarters.
PRANAV SANGHAVI answers, All the brokerage stocks have taken a massive hit as people are expecting lower income and bottomlines due to the record low volumes in this quarter due to the massive January correction.
vishwa asked, Very good afternoon Pranav, Can u please tell me what are the near term target for HDIL, Lanco Infra, Orbit Corp say for 3 months prospective
PRANAV SANGHAVI answers, Some of the real estate stocks have corrected by over 50% in the recent downturn. I would not invest into these stocks immediately but wait for their quarterly numbers this month before taking a call. As most analysts expect a 15 to 20% correction atleast in real estate prices accross all types of real estate.
priti asked, I have ugar sugar bought @23, should i hold or average it out??
PRANAV SANGHAVI answers, I don't follow that stock so will not be able to help you.
nataraj asked, suggest me some stokcs with in rage of 100-150
PRANAV SANGHAVI answers, I like IDBI, Indian Hotel, Hotel Leela, Power grid, Dena Bank etc.
ashishSaxena asked, Please tell about Cipla , itc limited, ifci , ispat industries and apollo tyres..
PRANAV SANGHAVI answers, I think Cipla will hugely benefit from the larger outlay for medical spending. I like ITC also with a long term outlook. In this massive correction ITC is one of the few stocks which has risen along with the other FMCG player, HUL.
reddy asked, I had purchased L & T @3000, JP Associates @243. what is its future of these stocks? I am a long term holder.
PRANAV SANGHAVI answers, L&T you should see your price in the future. JP you have got in at a high level so willt ake some time before you see that price.
Rajans asked, Hi I m holding Guj NRE coke @ Rs 110. I m still thinking to buy some more at current price around 153. is it worth buying at this price?
PRANAV SANGHAVI answers, I still like the stock. I would continue to hold on and even buy further.
soumyajit asked, hi pranav.. wat do u sugggest about Bhel?? is the surge going to last??
PRANAV SANGHAVI answers, I think the stock was correcting due to profitability concerns but with a long term view I like the stock.
star asked, hi i have 100 RIIL at 1250/-. what to do?
PRANAV SANGHAVI answers, you are making a huge profit but I would still continue to hold on. RIL being a index heavywieght moves comepletely in tandem with the market movements so it may correct in the short term but over a 12 month period it looks to move up gradually from its current levels.
bhavesh asked, i have 20 vidocon ind. @ 600 each pls advice
PRANAV SANGHAVI answers, Videocon has corrected sharply from its highs of Rs. 800 plus. It is currently trading at a sgnificant low and the company has also announce a lot of plans for the future. I would look at the stocks with a 6 to 9 month outlook.
gan asked, hi sir, can we enter sail at these levels
PRANAV SANGHAVI answers, I would wait for it move down a bit before entering the stock.
jitesh asked, Among mineral stocks which are growth stock and how long should be hold bet 6-10 or forever? How is XL telecom And Asian electronics ? & at what price can be bought for long term?
PRANAV SANGHAVI answers, I like MMDC, NMDC, Sesa GOa and Neyvelli Lignite. I also like XL telecom especially with its plans for expansion int he Solar Panels business which is fast growing and they also have a decent order book on hand.
Senthil asked, I bought tata steel for 715. can I hold it ?
PRANAV SANGHAVI answers, Yes if you are a long term investor you can surely hold on.
srikanth asked, Hi, i have 12,000 shares in ITC . what should i do.. I am a long term invester. My target is next year
PRANAV SANGHAVI answers, You should be happy with the way the stock has performed in the weak market scenario. I would surely hold on to the stock.
sandeep asked, relcapital
PRANAV SANGHAVI answers, I would look at it with a long term outlook of 12 to 18 months.
singh asked, which are the coming mutual fund and in which investment will be benefiial
PRANAV SANGHAVI answers, If you look at large cap diversified funds with a 3 to 5 year outlook you should benefit. I would look at Funds like DSP Tiger, HDFC Growth, Templeton Balanced, SBI Caps etc.
bala asked, can i buy infosys at current level
PRANAV SANGHAVI answers, I don't think Infy could have a very huge upside. It may go up by another Rs. 150 to 200 from its current levels.
pin asked, i have 250 shares of tata motors @ 664 , what do i do
PRANAV SANGHAVI answers, i would hold on.
Anish asked, I am keen to invest in Lanco ifratech at current price and Viceroy Hotels with a 1 yr time. What kind of targest you suggest ?
PRANAV SANGHAVI answers, I would rather look at DLF and Unitech at current levels.
rohit295 asked, what si the future for yes bank@174, gujarat nre coke@140, dena bank@50 and varun shipping@72 ? i have 100 shres each
PRANAV SANGHAVI answers, I would hold on to all the three stocks as I am bullish on all the stocks that you mention.
deekay asked, Hi,pranav,I've GMR185,NTPC275,SAIL272,RPL195,TISCO827,dishtv92,relcom642,uco57,dena82wipro480 as long term investment i.e 2 year,Kindly suggest.
PRANAV SANGHAVI answers, Hold on. You have a decent mix of stocks.
moviefreak asked, Any suggestions on the following shares? 1. HCC 2. IDFC 3. TCI Industries.
PRANAV SANGHAVI answers, I like HCC and IDFC. IDFC especially has a strong balance sheet and they have been growing at a decent rate over the past couple of years. They also invest in the infrastructure sector which is going to see huge spending by the government.
pixie asked, PFC came out with its results today & i have 200 of them at it worth taying in the counter?
PRANAV SANGHAVI answers, One must understand that PFC is purely a finance company and not a power generating company. It only focuses its activities on the power sector. With the power sector looking to grow handsomely over the next 3 to 5 years so should the business of PFC.
deepak asked, i have powergrid 150 share @133Rs. wheter hold or sell
PRANAV SANGHAVI answers, I would hold on.
rama asked, Hello, I purchase the NMDC Share for Rs. 11700 Can I hold or sell
PRANAV SANGHAVI answers, I would surely hold with its upcoming bonus and split. It has very little free float and a strong balance sheet and reserves.
mac asked, glenmark, ranbaxy, reliance ind...holding for two years now...hold further or sell???
PRANAV SANGHAVI answers, You could hold on to all the three with a 2 years perspective surely.;
san asked, sir iam holding ranbaxy,dlf,unitech,indian hotels,rpl,financialtech,hindalco,infosys,idfc,praj what are the future prospects of these companies.pls reply pranav
PRANAV SANGHAVI answers, You have a good bunch of stocks. I would surely hold on to all the stocks that you mention.
rat asked, I want to invest Rs. 2000.00 every month through SIP can you suggest me some mutual fund (not looking for tax benifit)
PRANAV SANGHAVI answers, You could look at DSP Tiger, Franklin Templeton, HDFC Growth, Birla Sunlife etc.
funkar asked, sir i m in lose of around 60k i bought mahindra, hdfc bank, hdfc, gmr infra, dlf, modiloft air and comm when the market was @ 20k
PRANAV SANGHAVI answers, Holdon to the stocks and you should see some profits in 6 to 12 months.
surender asked, sir can i bye saregama
PRANAV SANGHAVI answers, Saregama has one of the largest song banks in the country. It's balance sheet is also extremely strong and I would surely look at it with a long term perspective.
PRANAV SANGHAVI says, Well it's time for me to leave. It was great chatting with you guys. Bye for now.