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As ususal, during our weekly market chat on Tuesday, questions poured in from every corner and the market expert Pranav Sanghavi was quick with responses. Here is the transcript:
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PRANAV SANGHAVI says, Hello everybody. Lets begin the chat.
yyy asked, what are the prospects of RNRL?
PRANAV SANGHAVI answers, RNRL has just come out with their results and have shown a growth in profits. Being under the Reliance umbrella, I think it would do well in the future.
Rashi asked, Is it the right time to buy index funds
PRANAV SANGHAVI answers, Today all the frontline stocks which are also the index stocks are performing exceedingly well. It shows in their annual and quarterly results. In the future also, I feel it will be these frontline stocks which will continue to show growth. So, it would be a good time to pick up the Index Funds, especially since the market has witnessed a drastic correction.
jayesh asked, i had purchased sterlite optical qty-200no at rs 140/-&sterling biotech at rs 120/-qty 200no i want to know what is the prospect of company should i hold it or buy it
PRANAV SANGHAVI answers, Sterlite optical is hovering around Rs. 100 currently so you will have to wait for a while to get into profits. And Sterling Biotech you are just off your purchase price. All the mid caps have been hit bad in the recent downturn.
iii asked, May I know the prospect of Zee Telefilms?
PRANAV SANGHAVI answers, Zee is one of the leading channels in India. They have shown consistent performance and they also have certain restructuring plans which will benefit the shareholders. I would say hold on for the scheme.
jayesh asked, i had brought 200 no shares of hindalco at rs 175/- what is its prospects should i hold it buy or sell it
PRANAV SANGHAVI answers, I would recommend a hold on Hindalco. It has not only given good results but also has a good future ahead.
SMAHANA asked, SIR WHAT QBI AND HNI
PRANAV SANGHAVI answers, Please give me the scrip names please? do you mean to enquire about IPO applications QIB & HNI category? Qualified Institutional and High Networth Individual.
Rani asked, Hi Pranav, Why is the market falling again?
PRANAV SANGHAVI answers, Well there are various factors affecting the market. One of them being the recent hike in interest rate hike in the Japanese markets. So part of the funds borrowed out of Japan to be invested into India were being pulled out, thats why the Dollar was rising against the Rupee. But that seems to have been factored in. Even our interest rates have been hiked today by 25 basis points.
avinash asked, sir could tell me what is sell short? suppose i sell short itc at higher price today and can i buy it after a week when the price is low though i do not hold itc earlier. if i do so what will happen
PRANAV SANGHAVI answers, You cannot short sell a stock in the equity markets. You could though in the Derivative segment. Short selling is essentially having a bearish view on a particular stock or the market in general and selling it now to be able to buy back at a lower price later.
avinash asked, what are the future prospects of lml. ihave bought lml 1500@rs 17
PRANAV SANGHAVI answers, LML was into losses and under the BIFR. They are restructuring and the two wheeler markets are doing well. But keep in mind, Bajaj Auto and Hero Honda are firmly established competitors that LML will have to compete against.
pari asked, Hi, Going forward, which sectors, according to you will drive growth and give good returns and capital appreciation ?
PRANAV SANGHAVI answers, Well stocks in the Pharma, Tech, Cement, Infrastructure, Retail amongst others should perform well.
maghie asked, i have bought 30 IL&FS shares @ Rs 123 and the current price is Rs 102, Please advise on this stock
PRANAV SANGHAVI answers, You could hold on. It is an infrastructure stock and a financial institution.
RAJU asked, Hi Pranav, what is your opinion on investing in construction companies seeing the growth of infrastructure in India.
PRANAV SANGHAVI answers, I see a good future for the construction companies as the demand for infrastructure development will far outstrip the supply. That is why so many foreign players are vying to jump into our markets. But go with the frontline stocks to play safe.
SMAHANA asked, SIR WHAT IS THE MEANING OF QBI AND HNI
PRANAV SANGHAVI answers, I already answered that question. QIB stands for Qualified Institutional Buyer and HNI stands for High Networth Individual. They are categories for IPO Application.
maghie asked, I am new to mutual funds and starting investing in Sundaram Select Midcap - Dividend and Sundaram CAPEX - growth (SIP's of 2000 Rs each month). Can you please advise on these funds?
PRANAV SANGHAVI answers, I have not studied these funds but the Mid Cap fund NAV could be below its offer price as the Midcap Stocks have been hit bad. Unless it invests only to take benefit of the dividend of a particular midcap. The CAPEX fund also should perform well in the future. I could study them and revert in detail if you leave your email id.
rakesh asked, hi pranav, what is your broad outlook for the medium term i.e. 12 to 15 months - where do you see the sensex?
PRANAV SANGHAVI answers, I see it crossing the 13,500 mark. I am still bullish. I don't think the interest rates will affect the profitability of the corporates that strongly and if they continue to perform the way they are, I don't see why it cannot cross those levels.
Rajesh asked, what is u'r take on RPL ??+
PRANAV SANGHAVI answers, RPL will get into commercial production after a few years. It is a very long term play.
aasd asked, Target price for ICICI for the next 2 weeks??
PRANAV SANGHAVI answers, ICICI is one of the best banks in the private sector and has given some good results. It could appreciate by 5% to 10% over the next month or so.
Rani asked, I bought HDFC Top 200 Fund in June. I am losing. What to do?
PRANAV SANGHAVI answers, Hold on.
Ujjwal asked, I had of portfolio of Andhra Bank, Karnataka Bank, Uttam Galva Steel, Tatatele, Visual Software, IVRCL, Nagarjuna Construction, GTN Textile, LML, NOCIL etc. What is your opinion on this shares for the next 1 year or little more...
PRANAV SANGHAVI answers, Half of your stocks are good stock which will yeild good returns the other half could dampen your returns.
RAJENDRA asked, I have 80 shares of bajaj hindustan @409 and 150 sahres of Reliance Infra @483, I can hold both for 6-9 months should i book the loss or wait for the right time pls advise......
PRANAV SANGHAVI answers, The sugar companies have done exceedingly well. Bajaj Hindustan is no exception. The price is for Re. 1 paid up stock but it is delivering good results quarter after quarter. Reliance Infra also is a good hold for the future. They have big plans for expansion. Please hold.
rakesh asked, pranav, is this the right time to enter into the markets by buying select blue chips?
PRANAV SANGHAVI answers, Yes. Buy in parts on every dip.
VIVEK asked, I have 50 shares of Birla Corp@ 2.62, please advise should I hold ?
PRANAV SANGHAVI answers, Yes hold on.
Govardhana asked, If the sensex will go below 10000 levals.. again margins pressure will come?
PRANAV SANGHAVI answers, Mark to market margins in the Derivative segment will come into play. But only if it breaks the 9700 levels. Though very little build up has been seen in the Derivative segment. I think it was around 35% till day before yesterday.
babu asked, Hi Pranav, What is prospectous of aviation sector, and why Air Deccan share value is falling from its listed value
PRANAV SANGHAVI answers, Well the industry itself is in a turmoil due to the Jet Airways and Air Sahara fiasco. The aviation industry is a tricky sector and only if they are able to give consistent growth in profits the stock could be under the market performance. Plus, more and more competition is also narrowing the margins for the industry players.
Rajesh asked, What is u'r take on RPL...have 200 shares at 68/= ??
PRANAV SANGHAVI answers, If you have a 3 to 4 year outlook then you could hold on.
viksun asked, hi pranav, whats ur take on infosys, tcs, east india hotels, neyveli lignite & idbi at the current levels?
PRANAV SANGHAVI answers, I am bullish on Infosys, TCS and Neyvelli. IDBI and EIH has to be watched and their performance has to be seen. I would look at Indian Hotels or ITC in the hotel sector.
SMAHANA asked, What is your view on GMR Infrastructure IPO
PRANAV SANGHAVI answers, A bit overpriced and at a time when investor confidence is shaken. But it is in the right industry.
seen asked, hi, i bhuoght sterlite ind @ 423/-..please let me know what to do with this stock.can i hold?
PRANAV SANGHAVI answers, Sterlite has witnessed a continuos down trend. The metal prices will dictate the outcome of the stock in the future.
Govardhana asked, How long will indian stock market has to depend on the Global Markets?
PRANAV SANGHAVI answers, There were plans of allowing a small percentage of Pension Funds to be invested into the Equity Markets. If these plans were to fructify then the size of funds involved, our markets would not need to depend on the FII money. But they still remain a dominant player in our markets and will do so in the future.
sach asked, HI Pranav, Will the sensex once again cross 12500 mark?
PRANAV SANGHAVI answers, Yes it should cross that mark eventually.
Karthik asked, What is outlook for Ranbaxy.
PRANAV SANGHAVI answers, Ranbaxy has various negative news in the market. Till the issues are resolved the stock performance could be remain choppy.
vsbadri asked, i invested Rs. 82000 in various equity mutual funds when the market was at its peak. Today the navs stand at a point where i will make only 63,000 if i sell the units . how long do you think it will be before i can sell them and break even
PRANAV SANGHAVI answers, At least another 6 to 12 months. Hold on. Don't lose conviction.
Anurag asked, i want to invest in mutual funds. Is SIP a better option?
PRANAV SANGHAVI answers, Yes it is. SIP is essentially small investments in Mutual Funds over a longer term.
VIVEK asked, Sir, please advise about cement shares like JK Luxmi, Prism Cement and Gujarat Ambuja , what your opinion for these say in next 6 months?
PRANAV SANGHAVI answers, Guj Ambuja is a good buy at current levels.
shailesh asked, METAL OR INFRASTRUCTURE-WHICH ONE IS BETTER?
PRANAV SANGHAVI answers, I would go with Infrastructure as the metal stocks would depend on the prices of the metal commodities where as in infrastructure the demand over the next decade shall remain constant.
AmitM asked, Hi Pranav what is future of Mahindra Gesco I have purchase at 1000 and now the price has down drastically.should i hold the stock
PRANAV SANGHAVI answers, Yes hold on. It is a strong real estate developer.
rakesh asked, PRANAV WHAT DO YOU THINK OF THE THEORY THAT STOCK NAMES WHICH ARE EASY TO PRONOUNCE GENERALLY OUTPERFORM THOSE COMPARED TO STOCK NAMES THAT ARE DIFFICULT TO PRONOUNCE?
PRANAV SANGHAVI answers, Ha ha. I have not heard about that theory before.
SUDHANSHU asked, IS IT GOOD TO HOLD JENSON NIKOLSON AT PRESENT LEVELS
PRANAV SANGHAVI answers, Yes hold on.
mihir asked, I have purchased 25 Bf utility @ 1600. should i hold or sell. current price is 1280
PRANAV SANGHAVI answers, Hold BF. They are fighting a case, if they win the company shall get a windfall.
vsbadri asked, i have 100 shares of PTC that i bought at Rs.63 now PTC is trading at Rs.48 should i hold.
PRANAV SANGHAVI answers, Yes hold on.
shailesh asked, Now Retail seems to be the happening sector. Your take?
PRANAV SANGHAVI answers, A lot of competition is pervalent in the market already. Also larger players like Reliance are entering the market. And the current players are gearing up for the new local as well as foreign players looking to enter the Indian sub-continent like TESCO of UK, WalMart of USA etc.
prashant asked, I have 75 shares of Indian Hotel @1375, can you suggest whether to hold or move out?
PRANAV SANGHAVI answers, Hold on.
SUDHANSHU asked, HOW IS INDRAPRASTHA GAS AND RPL GOIN TO PERFORM
PRANAV SANGHAVI answers, They will perform well in the future.
Pankaj asked, What will be the impact on BSE/NSE due to rising intrest rates ?
PRANAV SANGHAVI answers, The impact according to me has already been factored in during the fall in the market in the previous week. Now they markets should stabilize and move up.
Pankaj asked, What will be the impact on BSE/NSE due to rising intrest rates ?
PRANAV SANGHAVI answers, The impact according to me has already been factored in during the fall in the market in the previous week. Now they markets should stabilize and move up.
rekha asked, Hi Pranav, What is the future for banking sector? Currently they are doing good. Will they continue to perform good in future?
PRANAV SANGHAVI answers, Most of the frontline banks have reduced their NPA's to manageable levels. I see a good future for the banking sector especially the frontline stocks like ICICI, HDFC and SBI. Also, the retail boom shall also boost the Banking sector amongst other factors.
Anurag asked, what do you suggest to small investors like me as market is so vulnerable?
PRANAV SANGHAVI answers, Invest through Mutual Funds or reputed Portfolio Managers.
joydip asked, i have purchased 200 TVS motors @155, what will i do should i hold or exit?
PRANAV SANGHAVI answers, Hold on.
shailesh asked, ANDHRA BANK @Rs.90. Any future?
PRANAV SANGHAVI answers, You could hold. Or switch to a growth stock amongst the banks.
venkat asked, Mr. Pranav, Is it worth buying any shares esp. in the baking sector. if so pl suggest few scripts.
PRANAV SANGHAVI answers, Yes it is and I just did in my previous replies.
altaf asked, Hi PRANAV,... Good afternoon... Whats is the future of CIPLA i have 125 share @ 201. should I book the small profit or hold it... What is the short term target for CIPLA say for next 3-6 months .. ?
PRANAV SANGHAVI answers, Good afternoon. If you have the capacity to hold on, I would recommend you do so. If you have another investment opportunity then book part of your profits.
drniketu asked, hi pranav..its dr.niketu shah here... just one general question... where do you see the sensex go from here ? will it cross 12000 in the next one year or so ?
PRANAV SANGHAVI answers, It should, yes.
sanju asked, i have 32 gail at 185 what i should do
PRANAV SANGHAVI answers, Hold on. It has a strong balance sheet and some great assets which it can leverage in the future.
sethumadhu asked, How about ITC scrip as of now
PRANAV SANGHAVI answers, I would still recommend a buy.
25 asked, sumit asked, what is the future of unitech?
PRANAV SANGHAVI answers, It is in the infrastructure sector, so I think it should do well.
Karthik asked, What is the outlook for Ranbaxy. Can I go long on Futures?
PRANAV SANGHAVI answers, I did answer a similar query earlier, please refer. I would be carefull and watch and study the news first.
Pankaj asked, what you feel about the future of small cap IT stocks?
PRANAV SANGHAVI answers, I would recommend to stick with the frontline stocks in the tech sector which are performing so well.
kk asked, Sir, How abt Wipro in 6 months ? To what levels will it shoot ?
PRANAV SANGHAVI answers, I am bullish on Wipro. Hold for 25 to 30% returns.
Dalal Street asked, Is this a good time to get in the market or wait till the market goes at 8K levels?
PRANAV SANGHAVI answers, I seriously doubt the markets would hit 8000 levels.
ph asked, is it a proper time to buy shares or sell shares holding for more than 3 yrs. your comments will be highly beneficial.
PRANAV SANGHAVI answers, Yes it is a good time as the market has corrected strongly.
Govardhana asked, If i have money say 10 Lacs to invest in MF shall i wait to market to come further(Say 9000 to 9500) or shall i invest at these levels
PRANAV SANGHAVI answers, Do not invest it at one shot. Invest on every dip or correction.
PRAKASH asked, Dear Pranav, Market is too much choopy,how long it will work.Are FII really runing away from INDIAN STOCK MARKET.
PRANAV SANGHAVI answers, FII's have only sold majorly in the month of May. All the other months they have remained positive. I don't think they will run away they believe more strongly than you or me in the India Story.
Rani asked, Hi Pranav, Will it be wise to sell my SBI shares now?
PRANAV SANGHAVI answers, SBI is the largest bank in India. It is trading at a PE ratio of below 10. I would recommend a buy and hold. I would not sell at these rates.
Hari asked, Do u suggest to hold NTPC
PRANAV SANGHAVI answers, Yes you could hold on to NTPC. It has a very strong balance sheet and is a consistent performer.
Joseph asked, Dear Pranav, Dont you think you are overconfident? For every company we ask; your answer is always "Hold On" . Are we here to just read your "hold On"
PRANAV SANGHAVI answers, Of course it depends on your investment time frame. But if you do hold on and the stock is a good performer in its results, you could minimize your losses or make a proft.
PRANAV SANGHAVI says, Thank you all for participating in this chat. Hope to see you'll next week at the same time. Bye.