The Indian economy is in doldrums.
Markets are extending losses and rupee has touched a new low.
Though the government is trying to allay investors’ fears with reforms and foreign direct investment caps, they remain jittery.
As markets continue to remain negative, investors continue to remain a confused lot.
What strategy should they adopt now?
Which stocks should they buy, sell and hold?
Is it the right time to enter the markets?
In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head – Equity Research (Retail), Anand Rathi Financial Services Ltd, answered such important questions.
Here is the transcript:
can I buy SUBEX now?
We would suggest to avoid the stock.
I have purchased bank of india earlier @294/200 share and today @265/400 share, need your suggestion
Don average BOI as 10% fall is not big compared to market fall. PSU banks the asset quality and restructuring of assets is still a concern but once the ineterst cycle starts cooling down that should help teh stock.
i think if you you hold long term then become profit but one week or month get loss so hold it for 2-3 month get profit
pls advice one good stock of reality at current level for one year investment...
We like Oberoi realty, Prestige, IBREAL form this space.
sesa goa current level is best for avg. invested at the level of 245
if you want to hold the stock for 2-3 years then you can average otherwise you can just hold and donr make any fresh investments.
Sir, what about Suzlon Energy, good for long term?
We would suggest to avoid high debt and debt restructuring stocks out of 10, 1 or 2 can be multi bagger but traditionally many of them have eroded wealth of teh investors.
How much will sink nifty index ?
Long term supportf or Nifty comes at 5500 till that doest breach there are chances that towards december market would make all time high.
pls advice idfc current level
We are positive on teh stock and since it has good management and entity for banking license it is a trigger for the stock. Their NIM's have been above 4% for last 2-3 years.
Sir, can I buy Wockhhard at this level, (1056/-) and if I can, how long I should hold it
Wockhard we are not comfortable with recent correction is almost more than 50% of its higest level whihc is very bad for the stock. So we would suggest to avoid teh stock.
Sir, 900 shares of GVK @Rs. 15/-. Pl. advice.
Infrastrutcure stocks has lot of headwinds and infracture push from teh government will only benefit teh stocks whihc may take lot fo time. So we would avoid the stock.
AM HOLDING MAHINDRA SATYAM AT 95-PL ADVISE?
Post merger Tech Mahindra and Mahindra Satyam joied entity will be top reveneu earning IT company in india. Good managemnta nd size would matter for long term whihc would improve the effiiency also so i would suggest to buy and hold for 2-3 years.
i have 100 ONGC at 319what should i do Sell hold or buy more ?
ONGC is a good buy but problem with PSU stocks is that governments disinvestment proces is hurting the prices of teh stocks. I prefer to play private scetor oil & gas rather than playin govt sector oil and gas. therefore we suggest to shift to RIL from ONGC.
tcs.. what to do
TCS you can hold as they have been gving consistent performance. they are diversified in terms of geography and their bsuiness segmnts. Also with rupee deprciting is a positive trigger as they dont hedge thier positions much.
IS IT RIGHT TIME TO ENTER NMDC,LIC,IDFC...
We like IDFC and LIC ubt for NMDC if you are willing t hold for longerterm like 3-4 years than you can BUY it.
Is Hero Motocorp a good long term buy
We are positive on the stock with it showing Rs. 2000crs as cash, we like it for long term purpose. We like Bajaj auto than Hero motocop.
can i buy Tata coffee,Apollo Hospital, ajanta pharma?
We are positive on tata Coffe and Apollo hospitals but in pharma space we would prefer LUPIN, SUNPHARMA And cadila.
pls tell about the condition of tata steel and titan industries
TItan Inds - It looks neagtive as gold prices are correcting and only due to the ruppee depreciating it is not reflected but couple of months down this will be visible and this is concern. For such a big brand the margin is also averaging around 8-9 % and is any inventory loss than impact is higher.Tata Steel - it is a cyclical sector and once the cycle turns then it will be an outperformer.
Please advise on Appollo Tyres at current level of approx. Rs. 62 / -
Apollo tyres hsort term pressure will be there so wait for 1-2 months before you can buy. The deal which they have struck with Cooper tyres is at evry much premium and that to converge with apollo tyres will take time till it reflect in teh numbers. Also combined entity debt will increase whihc will again put pressure on teh financila for teh company.
century textile @ 345 what should i do
The stock is looking very weak, i would suggest to exit in any rally as market is in oversold so any rally you please exit. BUY pharma stocks like sun pharma, torrent pharma and CADILA.
i have jet airways shares taken @480/- , shall i hold or sell ?
Jet airways is a very difficult bet with government policies not so clear in aviation sector and it si also very high capital intnsive sector. It is safer to shift to lower risk stocks like BAJAJ CORP AND BAYER CROP whihc are safe and cash cows.
i sell RCOM june future @ 109 now its 123, should i hold or exit or roll over ...
The stock that makes 32 week high or all time high after a very long correction should not be shorted. Rolling over losses is never a good idea so safer is to exit RCOM at loss buy stocks like LUPIN, HAVELLS which are near all time high and these stocks in teh enxt few months can give good returns even if market doesnt perform.
Sir,350 shares of Induabulls real estate bought at Rs.85/-. Hold or Sell
Yes we are positive on the stock for a longer term as real estate stocks are very much long term stocks. The company has been delivering good projects like that in like Worli project " Blu" also good execution track record. We would suggst to hold.
Can you suggest about L&T Finance
L&T Fin we are very positive mainly due to very good parent background coupled with banking license candidate. other companies whihc are in the race of banking license are M&M Fin and LIC housing and IDFC whihc we like and can give good returns in next 1-2 years.
can I buy MCX at this level?
It is better to avoid as the growth was seen mainly due to rise in Gold and silver prices and now with correction happening in precious metals whihc may continue for next 2-3 years and also with introduction of CTT MCX will find more pressure in teh months to come . so we would suggest to AVOID.
Dear Sir,I have 79 shares of Britannia at 677/-. please advise what is the price target.
Britannia has shown a very good improvemnt in EBITDA margins whihc shows that company reduced cost and improved efficiency and if this is continued with 8.8% is the margin for teh latest quarter and if this continous then stock can target 800 in next few quarters.
view on L&T, have bought @ 1575/-. Should I average
L&T wait for the Q1Fy14 results before you average. goo dstock to hold for a long term investor but margins have been coming don mainly due to low value orders and the pressure in teh sector. so once the economy recovers this will be teh major beneficiary.
Bot 1500 RIL @ 803. What to do
It is very attractive buying price and the stock looks very good. If gas prices are hiked then stock can rally to 1200 in next 12-15 months. the EPS has been steady to Rs. 66-70 in last 3 years. Going forward we see major upgrade in the earnings and now every verticle the investment cycle is over and the number would start to reflect the performance.
i hv DLF @ 186 hold or sell
DLF is a high beta stocks and in this space we like IBREAL, Oberoi and GODREJ properties. DLF is a bit risky at this level.
can I buy SUBEX now?
We would suggest to avoid the stock.
I have purchased bank of india earlier @294/200 share and today @265/400 share, need your suggestion
Don average BOI as 10% fall is not big compared to market fall. PSU banks the asset quality and restructuring of assets is still a concern but once the ineterst cycle starts cooling down that should help teh stock.
i think if you you hold long term then become profit but one week or month get loss so hold it for 2-3 month get profit
pls advice one good stock of reality at current level for one year investment...
We like Oberoi realty, Prestige, IBREAL form this space.
sesa goa current level is best for avg. invested at the level of 245
if you want to hold the stock for 2-3 years then you can average otherwise you can just hold and donr make any fresh investments.
Sir, what about Suzlon Energy, good for long term?
We would suggest to avoid high debt and debt restructuring stocks out of 10, 1 or 2 can be multi bagger but traditionally many of them have eroded wealth of teh investors.
How much will sink nifty index ?
Long term supportf or Nifty comes at 5500 till that doest breach there are chances that towards december market would make all time high.
pls advice idfc current level
We are positive on teh stock and since it has good management and entity for banking license it is a trigger for the stock. Their NIM's have been above 4% for last 2-3 years.
Sir, can I buy Wockhhard at this level, (1056/-) and if I can, how long I should hold it
Wockhard we are not comfortable with recent correction is almost more than 50% of its higest level whihc is very bad for the stock. So we would suggest to avoid teh stock.
Sir, 900 shares of GVK @Rs. 15/-. Pl. advice.
Infrastrutcure stocks has lot of headwinds and infracture push from teh government will only benefit teh stocks whihc may take lot fo time. So we would avoid the stock.
AM HOLDING MAHINDRA SATYAM AT 95-PL ADVISE?
Post merger Tech Mahindra and Mahindra Satyam joied entity will be top reveneu earning IT company in india. Good managemnta nd size would matter for long term whihc would improve the effiiency also so i would suggest to buy and hold for 2-3 years.
i have 100 ONGC at 319what should i do Sell hold or buy more ?
ONGC is a good buy but problem with PSU stocks is that governments disinvestment proces is hurting the prices of teh stocks. I prefer to play private scetor oil & gas rather than playin govt sector oil and gas. therefore we suggest to shift to RIL from ONGC.
tcs.. what to do
TCS you can hold as they have been gving consistent performance. they are diversified in terms of geography and their bsuiness segmnts. Also with rupee deprciting is a positive trigger as they dont hedge thier positions much.
IS IT RIGHT TIME TO ENTER NMDC,LIC,IDFC...
We like IDFC and LIC ubt for NMDC if you are willing t hold for longerterm like 3-4 years than you can BUY it.
Is Hero Motocorp a good long term buy
We are positive on the stock with it showing Rs. 2000crs as cash, we like it for long term purpose. We like Bajaj auto than Hero motocop.
can i buy Tata coffee,Apollo Hospital, ajanta pharma?
We are positive on tata Coffe and Apollo hospitals but in pharma space we would prefer LUPIN, SUNPHARMA And cadila.
pls tell about the condition of tata steel and titan industries
TItan Inds - It looks neagtive as gold prices are correcting and only due to the ruppee depreciating it is not reflected but couple of months down this will be visible and this is concern. For such a big brand the margin is also averaging around 8-9 % and is any inventory loss than impact is higher.Tata Steel - it is a cyclical sector and once the cycle turns then it will be an outperformer.
Please advise on Appollo Tyres at current level of approx. Rs. 62 / -
Apollo tyres hsort term pressure will be there so wait for 1-2 months before you can buy. The deal which they have struck with Cooper tyres is at evry much premium and that to converge with apollo tyres will take time till it reflect in teh numbers. Also combined entity debt will increase whihc will again put pressure on teh financila for teh company.
century textile @ 345 what should i do
The stock is looking very weak, i would suggest to exit in any rally as market is in oversold so any rally you please exit. BUY pharma stocks like sun pharma, torrent pharma and CADILA.
i have jet airways shares taken @480/- , shall i hold or sell ?
Jet airways is a very difficult bet with government policies not so clear in aviation sector and it si also very high capital intnsive sector. It is safer to shift to lower risk stocks like BAJAJ CORP AND BAYER CROP whihc are safe and cash cows.
i sell RCOM june future @ 109 now its 123, should i hold or exit or roll over ...
The stock that makes 32 week high or all time high after a very long correction should not be shorted. Rolling over losses is never a good idea so safer is to exit RCOM at loss buy stocks like LUPIN, HAVELLS which are near all time high and these stocks in teh enxt few months can give good returns even if market doesnt perform.
Sir,350 shares of Induabulls real estate bought at Rs.85/-. Hold or Sell
Yes we are positive on the stock for a longer term as real estate stocks are very much long term stocks. The company has been delivering good projects like that in like Worli project " Blu" also good execution track record. We would suggst to hold.
Can you suggest about L&T Finance
L&T Fin we are very positive mainly due to very good parent background coupled with banking license candidate. other companies whihc are in the race of banking license are M&M Fin and LIC housing and IDFC whihc we like and can give good returns in next 1-2 years.
can I buy MCX at this level?
It is better to avoid as the growth was seen mainly due to rise in Gold and silver prices and now with correction happening in precious metals whihc may continue for next 2-3 years and also with introduction of CTT MCX will find more pressure in teh months to come . so we would suggest to AVOID.
Dear Sir,I have 79 shares of Britannia at 677/-. please advise what is the price target.
Britannia has shown a very good improvemnt in EBITDA margins whihc shows that company reduced cost and improved efficiency and if this is continued with 8.8% is the margin for teh latest quarter and if this continous then stock can target 800 in next few quarters.
view on L&T, have bought @ 1575/-. Should I average
L&T wait for the Q1Fy14 results before you average. goo dstock to hold for a long term investor but margins have been coming don mainly due to low value orders and the pressure in teh sector. so once the economy recovers this will be teh major beneficiary.
Bot 1500 RIL @ 803. What to do
It is very attractive buying price and the stock looks very good. If gas prices are hiked then stock can rally to 1200 in next 12-15 months. the EPS has been steady to Rs. 66-70 in last 3 years. Going forward we see major upgrade in the earnings and now every verticle the investment cycle is over and the number would start to reflect the performance.
i hv DLF @ 186 hold or sell
DLF is a high beta stocks and in this space we like IBREAL, Oberoi and GODREJ properties. DLF is a bit risky at this level.
