The stock market's wild gyrations, during the last few trading sessions have set alarm bells ringing. The Sensex fell by 542 points, then by 615 points, then again by 235 points. . . figures that would unnerve even the most hardened stock market observers. In between, the market also shot up by 200 points on an occasion or two, further confusing investors.
So what does a lay investor do in such a scenario? We have heard experts say that the Indian 'fundamentals are strong,' companies' earnings are robust,' etc. We have also heard them say not to 'time the market,' 'be patient,' 'don't panic,' etc.
Shriram Iyer, Head Research and Director Edelweiss Insurance Brokers replied to many such readers' queries during an hour-long chat on rediff.com on Wednesday. Here is the transcript:
Mr Iyer says, Hi, this is Shriram. Am here to answer your queries on the markets.
Praveen asked, Dear Iyer i am a long term investor. i hold 200 shares of india cements. i am holding it from past 8 mnths . what shall i do now
Mr Iyer answers, at 2007-08-08 16:26:58Cement being a commodity, long term investing is difficult. We still see another year before the cycle is likely to turn. Indian Cements is among the better companies to hold in the space.
rao asked, i would like to buy 250 shares of reliance natural for long time holding at a price target of rs.100.00 pl. advise
Mr Iyer answers, The call on RNRL is dependant on how the case with Reliance is resolved though it appears they are on a strong wicket. Appears to be a good long term play but we will have to wait for the resolution of the case.
Jinesh Parekh asked, Hello Sir, I would like to know if I can invest in IFCI or not...
Mr Iyer answers, IFCI has been moving on reasons beyond core business - right from stake in NSE to real estate. Recovery of NPAs is another expected trigger. Plus talk of strategic stake sale. However, we have not been able to attach a value to these upsides - hence it is difficult to recommend the stock today.
Jinesh Parekh asked, Hello Sir, I would like to know if I shud Buy, Hold or sell Cairn India Stocks.
Mr Iyer answers, My colleague who tracks Oil and Gas is positive on Cairn at this point in time. We have an Accumulate reco on this.
Kaveri asked, hi there Mr Iyer, Can I join?
Mr Iyer answers, Sure
mangesh asked, good evening sir .I am new to market. Can u plz tell me this is right time to start to invest in share market.
Mr Iyer answers, Investing with a long term view is recommended. Investing through a good mutual fund is further recommended. SIPs are a good way to even out across the ups and downs of the market.
nitin asked, What is ur view on Silverline Technologies? Confidence Petro?
Mr Iyer answers, No view on either stock. Sorry.
Hitesh asked, hi can i join with u guys
Mr Iyer answers, Sure
Senthil asked, What about Entertainment sector in India? Which stocks have good prospects?
Mr Iyer answers, We like many of the subsectors in Entertainment. Print media is attractive. Multiplexes should do well over the long term.
Ketul asked, I have 50 L & T Shares @ Rs. 1420/-, shall I hold or book profit?
Mr Iyer answers, We are positive on L&T as one of the default plays to participate in the infra space in India. It is a good long term story.
Falcon asked, Hi, Mix of Infrastructure, Telcomm, Retail, Realty and Capital good is the right mix of porfolio for long term investment purpose? Please suggest
Mr Iyer answers, It is a good mix.
nitin asked, I have bought 400 shares of Marico @ 56. What is ur view?
Mr Iyer answers, We have a positive view on Marico. This is a 12 month+ view.
nitin asked, I have bought 400 shares of Marico @ 56. What is ur view?
Mr Iyer answers, We have a positive view on Marico. This is a 12 month+ view.
misha asked, Dear sir, I have invested 7 lakh plus in mutual funds. Will they continue to earn me good returns this year too?
Mr Iyer answers, Mutual funds are a good way to get equity market exposure if you do not have the time or the inclination to do it yourself. Returns from good fund houses are expected to outperform the broad market over time.
rrrr asked, I have RIL, RNRL, RPL, RCL, ICICI Bank and DLF. Can I hold them for 10 to 15 years.
Mr Iyer answers, I would think so.
Ketul asked, As you said on infra, my parents are holding 350 unitech @ Rs. 466 (Average Price), I'm waiting for the bonus issue, what are long term prospects in comparison to DLF. They are holding 280 DLF also.
Mr Iyer answers, Both should do well. They are both default India plays on real estate. Real estate market cap as a proportion of total will definitely increase over time as is the case in other markets globally.
gfgfg asked, Is ICICI stocks to hold or sell?how will be the central Bank of India IPO?
Mr Iyer answers, We are positive on Central Bank.
indresh asked, good evening sir, i m also new in stock market. so plz advice me which company's share i purchased.
Mr Iyer answers, I would advise you to start with a good mutual fund.
uday asked, sir,what is your view on infosys & tcs is it good time to bye in a long term view
Mr Iyer answers, Both are high quality companies and should be good long term stocks to hold. However, with the uncertainty on the INR/USD, it may be advisable to wait in case you are looking to enter.
si asked, What is your take on Bharat Bijlee ?
Mr Iyer answers, The stock is not under our coverage but the industry they operate in is very interesting and we have a positive view on that.
avitaserrao asked, For a fresher into the stock market what r the precautions i will have to take? And
yes what would be the best buy?
Mr Iyer answers, It would be a good idea to start with a mutual fund and build up confidence over time. Good quality IPOs are also a good way to start.
harshada_gawade asked, Hi I am new to market. Can you please tell me list of few companies to make my portfolio so that it become balance and futuristics. I am software engineer and holding couple of shares from infosys and ongc
Mr Iyer answers, Investing through mutual funds is a good way to start. Good quality IPOs are again a decent route.
vikrambobade asked, Dir Sir, What is the future of Wipro and KPIT stocks ?
Mr Iyer answers, We are positive on Wipro. No view on KPIT though it is also a good company. With the uncertainty on the INR/USD, it may be worthwhile to wait.
Anwar asked, sir, I'm a NRI, planning to invest some money in stock market after 6 months. Which type of securities i can sellect? I would like to get monthly/quarterly income.
Mr Iyer answers, Stocks are not likely to give monthly/quarterly income. Mutual funds may offer these features.
Hardip asked, whats on advice on IFCI,First Source Solutions holding for 3-5 years?
Mr Iyer answers, No view on IFCI. Firstsource appears to be a good long term story.
Amreeksingh asked, Hi Mr. Iyer i have got 100 share of DLF ALLOTED @525, RIGHT NOW IT IS AT rS. 600 . wHAT SHOULD I DO. aLSO WHETHER rpl & ICICI are good share for 3-6 months time spn . Please suggest.
Mr Iyer answers, DLF should be a good long term story. Not sure about next 3-6 months though.
raovala asked, Hi.. can you please some good stocks in CRAMS sector
Mr Iyer answers, Dishman, Jubilant, Nicholas are all good companies in this space
venkyat asked, what is the reason for markets going down when Indian market is not involved in subprime lending.
Mr Iyer answers, Indian markets are also influenced by global liquidity which impacts flows into the country. A crisis in other markets is likely to reduce risk appetite, taking flows away from emerging markets.
varkey asked, what is the future of ABB, BHEL, L&T, Praj Industries, DLF, HDIL, Bharat Bijlee, Reliance Telecom. I would like to hold it for 5 years
Mr Iyer answers, We are very positive on the infrastructure and engineering and capital goods space.
sivakumar asked, sir i have kalpataru power shares at rs.1436 each can i hold it now?
Mr Iyer answers, We have a positive view on power transmission towers as a whole.
Addy007 asked, How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara? How do you see Purvankara?
Mr Iyer answers, no view currently
yogeshs asked, what about Reliance communication and SRF
Mr Iyer answers, We are positive on telecom service providers like Bharti and RCom
chinmoy asked, Hi Shriram! What's your opinion on media and entertainment industry? 2-3 years perspective..
Mr Iyer answers, Positive, particularly on print media today and multiplexes over the medium term. Quite a few good companies though valuations are a bit on the higher side today.
sohail asked, Dear Mr iyer, what is the future of ABB i would like to hold it for 5 years
Mr Iyer answers, We have an Accumulate reco. Positive on the space in the long term.
garima asked, Sir your views on Crompton Greaves ? Hold or Sell ?
Mr Iyer answers, We are positive
raja asked, sir, what is your view about hotel leela? sir, pl answer my Q
Mr Iyer answers, Hotels as a sector are doing well. No view currently on Leela
ravishinde asked, Jai Corp?
Mr Iyer answers, No fundamental view unfortunately.
santhosh asked, sir pls tell me the prospects of ranbaxy
Mr Iyer answers, We have an accumulate reco and are positive. Most of the pain appears to be behind the company.
venugopal asked, Hi Iyer, How u rate the NTPC, DEEP INDUSTRIES, PUNJ LYOD, PRAJ INDUSTRIES, CROMPTON CREAVES for the long term investing?
Mr Iyer answers, We have a Buy reco on CRG
venugopal asked, Hi Iyer, How u rate the NTPC, DEEP INDUSTRIES, PUNJ LYOD, PRAJ INDUSTRIES, CROMPTON CREAVES for the long term investing?
Mr Iyer answers, We have a Buy reco on CRG
amit.options asked, How big is the impact of US sub-prime mess on Indian markets?
Mr Iyer answers, No direct impact except for some IT companies which had these as clients. Indirect impact due to lower FII flows is possible - will know over next few days if this is significant
garima asked, Sir , your views on ITC, I am holding 300 @ 170 for last one year
Mr Iyer answers, We have a positive view on the stock. The stock has not performed plus there has been near term negatives in terms of excise increase. We think this is behind the stock and it is a good long term story and provides a good defensive quality in volatile markets.
KALLOL asked, SIR ......PLEASE ....COMMENT ON MEDIA VIDEO I HAVE 1000 OF THEM AT 56 I AM WRITING THIS FOR THE FIFTH TIME
Mr Iyer answers, No view on this stock currently. Sorry.
mukesh asked, how do u look at PSU oil marketing cos. IOC/HPCL/BPCL ?
Mr Iyer answers, They are negatively impacted by higher oil prices. Given the influence of the State on this sector, it is difficult to make a clear investment call. However, given their asset base, etc. they are undervalued assuming these concerns go away.
Mr Iyer says, Thanks for your time and interest. Given the amount of time available, i would not have been able to answer all questions. Apologies for that. Thanks. And happy investing.
