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Indian markets achieved yet another milestone on September 26. It opened positive and within seconds, hit a new high, it crossed 17,000, only 5 days of trading since it crossed 16,000.
Did you make gains while the Sensex soared?
How do you plan to consolidate your gains? What should your investment strategy be now?
Should you invest more in the market? Or should you consider selling stocks? What would be the best stocks to buy, sell or hold at this juncture?
In an hour-long chat on rediff.com, market expert Pranav Sanghavi answered many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat. Let's begin.
Abhishek asked, Hi pranav GMR @ 810...hold or sell
PRANAV SANGHAVI answers, at 2007-09-26 14:01:52In the short term you may see lower rates but in the long term I think you will see higher prices. I would hold with a 1 to 2 year outlook.
Mahesh asked, Hi Pranav. What is your perspective on Tanla Solutions. I would like to hold it for a short term.
PRANAV SANGHAVI answers, I would much rather switch to a frontline tech stock like a TCS or a Infy if you wish to take a contrarian view and buy tech stocks.
Mahesh asked, DLF, HDIL, Zenotech (SUNTUB)...Hold or Sell?
PRANAV SANGHAVI answers, I like DLF from the lot. A month or so back I had recommended DLF at around Rs.; 500 levels. It has risen sharply so I feel a small correction should come in the stock and that would be a good time to get in. I like DLF for the longer term.
sanajay asked, what is the short term target of RNRL
PRANAV SANGHAVI answers, I think in the very short term it may move downwards as it has risen too much too soon.
varun asked, i have reliance petro . should i hold it or keep it
PRANAV SANGHAVI answers, As I have said earlier, if you are a longer term investor you could continue to hold on to the stock.
varun asked, i had bought kirloskar at 348 ... total 500 share .. it went up but now again down .. what to do
PRANAV SANGHAVI answers, I think you will have to hold on much longer to see your prices.
somrajghosh asked, Hi ! How long do you think the market will be booming? What heights will it touch. Will it fall? Is there any risk for long term investments? Please advise.
PRANAV SANGHAVI answers, I have been bullish on the Indian markets from 2004 levels. I am still bullish on our market and am convinced we shall make new highs every year for the next few years. Timely corrections are part of a strong bull run so I would not get perturbed. If you stick with the top 100 odd scrips you should be fine as they are growing profits steadily and consistently.
bond asked, Hi, man
PRANAV SANGHAVI answers, Hi Bond.
paren asked, how much consolidation shall we see from now
PRANAV SANGHAVI answers, I think we have moved up way too fast. It was like the half percent cut was like opening the floodgates. A cosnolidation/correction phase of 2 to 3 weeks should take place before the market moves up on Sep Qtr results.
Rajnish asked, I had taken 100 quantity of Sanjivani Parantel for Rs.75/- Sholud I hold it or sold it?
PRANAV SANGHAVI answers, I don't follow that stock sorry.
TAPAN asked, SHOULD I ENTER NOW FOR THE PUNJLLYOD FOR LONG TERM BASIS ? YUOR ADVISE ARE REQQUESTED
PRANAV SANGHAVI answers, They havce good development plans on the cards but I prefer Unitech and DLF from the construction lot albiet at lower levels. But Punj also is a quality stock and could be held with a long term view.
Arun asked, Hi Pranav, i have Dena and UCO bank stock @ 34 and 39 resp. and NTPC@ 168 .....Hold or exit..what is the long term target for these stocks...and is it the right time to busy RNRL and reliance petro?...
PRANAV SANGHAVI answers, I had mentioned in my chats in March or April that I see our interest rates falling October onwards. With that factor if the domestic interest rates do fall then I think the banks will do well. And I've been a bull on NTPC form last year. I would surely continue to hold on.
akshayparmar asked, it it the right time to sell mutual funds?
PRANAV SANGHAVI answers, If you are looking at them with a short term view you could book some profits. If you have invested with a 3 to 5 year term then you could continue holding them.
satya asked, Hi Pranav, I want to invest in DISH TV india, Tisco, Hotel Leela, Ntpc, Suzlon energy,Parwsanath developer for long term .Is it right time to invest in these companies? Tell me the right valuation for these companies? Thanks Satya
PRANAV SANGHAVI answers, I would strongly suggest you wiat for a dip/correction to invest. The market is over heated and could correct anytime.
uyk asked, hi pranav..... i would like to take a contrararian's call to buy tech shares like infy, wipro, tcs, tech mahi. what is your opininon about it? would you like to add/delete any stock from my list?
PRANAV SANGHAVI answers, I like all the stocks you mention and I would surely hold them with a 1 to 2 year outlook from current levels even though they may still correct a bit further.
varun asked, if it get split .. i will be a bonus .,
PRANAV SANGHAVI answers, A split is a split in the face value of the shares. So if a Rs. 10 face value stock gets split to a Rs. 2 face value stock you will get 5 times the stock you held. It is not a bonus issue.
TAPAN asked, I PURCHASED PARSVNATH DEVELOPMENT @420/ WHAT SHOULD I DO ? PLS. ADVISE
PRANAV SANGHAVI answers, From the current levels I would wait for a few quarters rather than invest. But you have got in at even higher levels. I guess you will have to hold on for a few more quarters.
anoopupadhyay asked, Hello
PRANAV SANGHAVI answers, Hello Anoop, and what is your query?
Achyut asked, What will be future of IT. Will it give return or will decline in near future.
PRANAV SANGHAVI answers, In the very short term they may as the dollar is depreciating. And foreign fund flow causing the major depreciation in dollar is not abating.
manibag asked, What is the future of United Spirits, it is Rs.1750 approx. as on date
PRANAV SANGHAVI answers, I think it could give you a 40 to 50% return over the next few years.I would hold on.
kuna asked, Hi Pranav, Is it right time time buy Unitech for long term?
PRANAV SANGHAVI answers, I think it has run up along with DLF a lot. I would wait for it to correct. I had recommended in my earlier chats when the stock was cum bonus, it is already about 20% higher within the month.
TestABC asked, Future of ZEENEWS, ITC, IDFC, IDEA
PRANAV SANGHAVI answers, The latter three can be held with a long term view. Zee being a media stock and that too where its peers are CNBC, NDTV and TVToday. So I would be a bit more carefull.
ritush asked, is it good time to buy IFCI
PRANAV SANGHAVI answers, I think in the short term it would rise a little bit before the correction. They are to announce the list of the final bidders for the stake. In the longer term the price will depend on what valuation the company gets.
AVP asked, Sensex @ 17K, what do u feel where r we heading to, isnt this confusing
PRANAV SANGHAVI answers, I don't think it is confusing at all. We Indians are still skeptical of our country's potential where as the foreign players are pouring money into our country. We could see higher index levels over the next few years. In the short term there could be corrections.
poojaav asked, HI PRANAV, I HAVE 200 SHARES OF IFCI. SHOULD I HOLD THESE SHARES OR SELL IT OUT AND PLZ TELL ME FOR HOW LONG I SHOULD HOLD IT WITH ME.
PRANAV SANGHAVI answers, I would surely hold on for another 4 to 5 months till the outcome of the stake sale is clear.
arunvyavahare asked, should I PURCHASE NTPC @ current price?
PRANAV SANGHAVI answers, In the very short term we may see a mild correction, I would get in that time. But as a stock it is a fundamentally strong stock and could be bought witha 1 to 2 year outlook atleast.
tutul asked, Hi, I am newto invest in stocks. what sugesstions you have for me?
PRANAV SANGHAVI answers, I would suggest you take on some training courses offered by the training Institutes of BSE & NSE and then consult a broker.
shagun asked, hi pranav how r u?
PRANAV SANGHAVI answers, Hello Shagun, I am fine thank you. And what is your query?
kasim asked, DLF, hold or sell it?
PRANAV SANGHAVI answers, Definately a hold.
akpanja asked, akp: Hi i have 400 shares of petronet lng at Rs.79/= per share. Shall I hold it or sell
PRANAV SANGHAVI answers, You could hold on.
anildhir asked, Hello Pranav i have 10 - 10 shares of infoysys and TCS with 3 month horizon ,can you please let me know when to exit
PRANAV SANGHAVI answers, With a short horizon like 3 months you may not see that much appreciation . As it will take them some time to combat the depreciating dollar factor. But I am sure they will.
tushar asked, Is there any chance of reaching 25K in the next six months
PRANAV SANGHAVI answers, I don't think so.
bmd asked, Do you suggest to enter in good IT Companies like TCS, Wipro, Infosys and Satyam, when rate is at 52 week low and with long term presepective of 2 - 3 years
PRANAV SANGHAVI answers, Yes .
dhiraj asked, I have RIL@1810, IDFC@110, TERASOFT@80.What is future of these stock.I can sell any one from these or hold ?
PRANAV SANGHAVI answers, RIL is an index heavy stock and any movement in the index will reflect on the stock. IDFC you can surely hold. But Tera you could switch.
Agyani asked, Hi Pranav, plz tell me prospect (expected price) of Info Edge and Balaji Tele in October as they announce H1 results.
PRANAV SANGHAVI answers, I don't follow those stocks sorry.
suunyboy asked, Good afternoon Pranav, I am currently holding 1000 share uco bank @Rs29, 1000 share TTML @ Rs 40, 1000 share RPL @ Rs 120, 1000 share RNRL @ Rs 55, 700 shares IFCI @ Rs 70 & 500 shares Dena bank @ Rs 60 ..... kindly advise if I should sale or hold .. i can wait for 2 years more .... also tell which shares to buy at current level ....... thanx in advance
PRANAV SANGHAVI answers, I would request you to send an individual query at the end of the chat page after it is posted s you have too many stocks in 1 query. Thanks.
kuna asked, Hi, Plz suggest me some fundamentally good stocks for long term future.
PRANAV SANGHAVI answers, I would look at L&T, SBI, IDFC, DLF, ITC etc but after a short correction.
Mona asked, Hii Pranav What do you think will this trend continue or market will crash? i have invested in RNRL and Finolex Industries. Should i hold them or sell them?? Which securities should i invest for profits in 2-3 months?
PRANAV SANGHAVI answers, You could book partial profits on RNRL as it has run up tremendously and without much reason. I don't think the markets will crash unless some major scare or factor affects the market in the near future. A mild correction should not be ruled out though.
Oldkid asked, Shankar Sharma of First Global says Index will touch 30000 in 9 months. Do you agree Pranav ? Or Has he gone crazy
PRANAV SANGHAVI answers, I don['t agree surely. It may touch that magical figure but after maybe 5 to 7 years. If our country is able to grow its GDP at the current levels.
arunvyavahare asked, I HAVE PURCHED OMAX AUTO 200 SHARES @ 109 WHETHERE TO SELL OR NOT NOW
PRANAV SANGHAVI answers, I would hold the stock as the auto companies may perform better over the next 2 to 3 qurters especially if the interest rates are reduced domestically.
ps asked, Is it a good tiem to enter automobiles sector ? What are your picks ?
PRANAV SANGHAVI answers, Yes. I like Maruti, M&M, Telco.
ps asked, With a one year outlook shall I book losses or hold IT ?
PRANAV SANGHAVI answers, Hold.
jayati asked, hi pranav whats the outlook on tatatele?
PRANAV SANGHAVI answers, I am not too bullish on the stock.
ps asked, What is your oulook on RCom ? I have been holding for more htan a year. Shall I book profits now?
PRANAV SANGHAVI answers, I would continue to hold on. Ours iss the fastest growing cellular markets in the world and RComm is a leading player in the same.
ps asked, What are your picks from Power sector ?
PRANAV SANGHAVI answers, I like NTPC, REL and Tata Power.
BUNTY asked, WHICH IS BETTER OPTION MUTUAL FUND OR SHARES???
PRANAV SANGHAVI answers, If you do not have time to devote to the markets then surely MFs.
LizardKing asked, As a NRI from Australia,could I see gains in the Stock Market, now that the rupee is so strong? I am looking at ITC, NTPC, RIL.
PRANAV SANGHAVI answers, You could see growth but the dollar is also on a deprecating path. So you would need to hedge your dollar position to retain the profits made in the market.
kshitij asked, Hi pranav Are there any shares which one can be purchased at even this high?
PRANAV SANGHAVI answers, You would need to do some study and find stocks which are fundamentally strong but have not risen in this rally and then find out why they have not risen before investing in them.
ps asked, What is your take on Clutch Auto ?
PRANAV SANGHAVI answers, I woudl hold on as the auto ancialliary stocks should perform well over the next few quaters atleast.
jayati asked, hi pranav i just sold ntpc, relnat, relpet n ifci. sd i purchade those again current level?
PRANAV SANGHAVI answers, You could buy them abck at lower levels at dips or correction.
kshitij asked, Hi pranav , ICICI should be hold or sell at 1030 raets. it was 1025 intraday
PRANAV SANGHAVI answers, If you are looking at it for 6 to 12 months you could hold on surely.
har asked, hello pranavi hv cipla- @228/per share-50 n0s and hindalco-@192/-per share 50 shares, to sell or not
PRANAV SANGHAVI answers, You could switch Cipla with another stock but hold on to HIndalco.
sksksks asked, can one buy nicolas piramal currently
PRANAV SANGHAVI answers, With a long term view yes.
agarwalavi asked, hi Pranav i Have got 5000 Shares of vishal Export, what should i do
PRANAV SANGHAVI answers, book proftis and exit.
Deepak asked, I am very much new to the stocks and shares and am planning to start my investments from the month of October and am planning to start with some MFs. The Market is RED HOT now; so would you suggest it to be the right time and from where can i start?
PRANAV SANGHAVI answers, When the market is in the midst of a correction. Not right now when it is at its all time highs.
ps asked, wHAT IS your take on Tata Motors ? Woudl the likelihood of interestst rates going down impact the stock price ?
PRANAV SANGHAVI answers, Yes I just mentioned that in my answer a few queries earlier.
kasim asked, what is your view on Purvankara and omax?
PRANAV SANGHAVI answers, Not so bullish on either. I would rather wait and see their performance over the next few quarters before I invest with them.
jhsdeepak asked, Hi Pranav. What is your perspective on RPL . I would like to hold it for a short term.
PRANAV SANGHAVI answers, In the short term there may be a correction in the price but in the longer term the stock should do well.
dev asked, Purvankara and omax? shift to dlf and ansal
PRANAV SANGHAVI answers, I like DLF and Unitech.
vyas lomesh asked, dear sir.. i m having 270 shares of babk of rajasthan @ 39...now wat i do??? hold or sell / /& please can u suggest ne share (blue chip) which will be 5-10 times in next 5 year
PRANAV SANGHAVI answers, I think you can sell and switch a better quality bank.
Viswa asked, Hi Pranav, Good afternoon. What is your bet on the sensex three years from now? (say September 2010)?
PRANAV SANGHAVI answers, No one cna predict what the market will do tommorow forget 3 yars form now. But if I had to stick my neck out, I would say about 50 to 75% higher than todays levels.
amy asked, hi pranav goodafternoon. i want to know the midterm prospects of the market & also want to know te future of PUNJLLOYD & BPL
PRANAV SANGHAVI answers, In the medium term of say 3 to 6 months there will be a lot of factors affecting the markets like 2 quarterly results, the budget and the interest rates. So makets could be volatile but move up gradually.
Mona asked, I have 500 shares of RNRL bought at 48 should i hold or sell it?
PRANAV SANGHAVI answers, I would book partial profits as it may correct sharply at the time of a correction in the short term.
kumar asked, bought wipro at 500plus, now its down to 400plus. shud i wait or sell
PRANAV SANGHAVI answers, It may further correct from current levels if Ruppee strengthens further.
A asked, Hi Pranav, Should we exit IT and reinvest in Capital goods like L&T, BHEL or RIL?
PRANAV SANGHAVI answers, I would do so as you will see better returns over the next year in the capital goods stocks than the IT stocks.
sdfgvs asked, wat will happen to power grid corp of india shares on listing day??do u recommend to hold it for long term
PRANAV SANGHAVI answers, I think the stock will list at a substantial premium going by its issue price and subscription numbers. One needs to see its performance over the next few quarters before taking a call on the stock.