Volatility continues to plague the markets. The market opened lower on Wednesday, down 185 points only to end flat.
Under the circumstances, what strategy should the investors follow?
Is this the right time to buy stocks? If so, which stocks and sectors should you concentrate on?
In an hour-long chat on rediff.com on Wednesday, market expert Pranav Sanghavi replied to many such readers' queries. Here is the transcript:
PRANAV SANGHAVI says, Good afternoon and welcome to the chat.
riyas asked, Hi Pranav, Which stocks you prefer to hold in real estate indutry among Omaxe, Unitech, Puruvankara, Parsvnath?. Thanks.
PRANAV SANGHAVI answers, at 2008-05-21 16:03:37Hi Riyas, from the real estate bunch I like DLF, Unitech for their sher size and nationwide model. Also regional players like Orbit who have some sort of a niche in high return areas.
prabhu asked, Hi Pranav, I have invested around 50K to 100k on the following MF. I like to hold it for minimum 5 years. Please suggest me whether they are good MFs. DSP ML Opportunities Fund, DSP ML Tiger Fund, HDFC Equity Fund, HDFC Top 200 Fund, ICICI Infrastructure, ICICI Real Estate Securities Fund, Kotak Opportunities Fund, Sundaram BNP Paribas Select Thematic Energy Opportunities, UTI Infrastructure Advantage Fund - Series 1. Thanks
PRANAV SANGHAVI answers, With that kind of time frame and the Funds that you mention I don't think you should have any problem in beating the Bank FD's and inflation surely.
kumar asked, What is your take on mutual funds like Reliance regular saving fund, Reliance power growth. Is it good fund to invest for 3 to 5 years?
PRANAV SANGHAVI answers, With a 5 year outlook you should see a decent return on your investments.
parthi asked, Hi sir, Can you suggest some good small cap and medium cap shares name which would return good returns in 2 to 3 years outlook. Thank you for your time.
PRANAV SANGHAVI answers, You could look at stocks like Indian Hotels, NTPC, IFCI, Dena Bank etc.
sri asked, Hi Pranav, Good Afternoon.I am having 2 questions. 1>I am having CAIRN India Limited bought in IPO.Whether shall i hold or sell? I am a long term investor. 2>I am having some cash and want to invest in good shares.Which one will you recommend me???
PRANAV SANGHAVI answers, If you are a long term investor you should surely hold on to Cairns. I would look at stocks like L&T, SBI, RIL but only on dips and not on rising markets. There still could be some weaknss and consolidation before the markets actually move up further.
kapil asked, I have bought 25 shares of Pantaloon retail at 450 and 30 shares of Jindal saw. I can hold it for 6 months, please suggest me whether it would return good profits. Thanks
PRANAV SANGHAVI answers, You could surely continue to hold on to both. You could see a return of 10 to 15% over six months.
SRB asked, What is your take on Bajaj Auto, IDBI, Dredging Corp. Can i buy it at current levels.
PRANAV SANGHAVI answers, Despite the higher interest rates and inflationary scar I think Bajaj Auto wills till perform well over the next three to four quarters. I like dredging corp as they have a strong balance sheet plus the government has given good tax breaks and other sops for dredging companies. IDBI also shoould perform decently over the next 6 to 12 months.
Abhishek asked, Can i sell infosys?
PRANAV SANGHAVI answers, With the Dollar having appreciated I would continue to hold on. Despite the worry that due to the mortgage meltdown the financial software services firms will suffer, I feel that Infy will manage better than expected 4 quarters this year.
Abhijit asked, Hi Pranav, Waht is your view on Manaksia, Indiabulls Security, Gujrat NRE coke, Havells? Thanks
PRANAV SANGHAVI answers, From the stocks you mention I like INdiabulls Realty and Guj NRE coke.
pal asked, what is your take on Grasim industires, the price of scrip is less than to its 52 week low now. Can i buy grasim scrip at the moment. I can hold it for 1 to 2 years period. Thanks
PRANAV SANGHAVI answers, This is a good time to accumalate on every dip in small part with a time frame of 1 to 2 years. You should see decent returns over that time frame.
rkg asked, What is your Prediction on Crude oil forecast
PRANAV SANGHAVI answers, Traders on the MERC feel the price should rocket above $135 per barrel ver soon and we're not far away. Their next target is $ 150 dollars. This is scary or net oil importing country like ours. OPEC has also said that in the short term they have no plans of increasing their output therefore prices may go up further.
NIIL asked, WHAT IS THE FUTURE OF SHREYAS SHIPPING, I HAVE 400 SHARE AT @142/PER SHARE SHOULD I HOLD OR SELL? PLS REVERT THE SAVE.
PRANAV SANGHAVI answers, You oculd hold on. They were in the news for some positive developments recently.
sk asked, jindal steel & power hold or sale
PRANAV SANGHAVI answers, Surely hold.
Deepak asked, Hi Pranav, I have shares like LNG & GMR, I want to invest more for 1-2 years in the margin of Rs.50/- to Rs.200/-
PRANAV SANGHAVI answers, GMR is a good long term bet and you could look at it on every dip.
vel asked, I would like to invest in Mutual funds. I am expecting very good returns like 20 to 30% per year. I can hold it for minimum 5 years. Can you please suggest some good funds? Thanks
PRANAV SANGHAVI answers, I won't be able to give you speific names but you could look at large cap diversified funds. You could also look at large cap growth funds offered by many fund houes.
Manu asked, Hi Pranav, Is is worth buying Aban Offshore at 4050? Also I have NTPC @ 210 and India Glycols @ 330. Shall I hold?
PRANAV SANGHAVI answers, Aban is the largest offshore drilling services priovider in the country. They have made overseas acquisitions also. I would surely hold on witha long term outlook. NTPC is also surely a hold.
rohit asked, what about rnrl shares... should i buy??
PRANAV SANGHAVI answers, I would not buy at current levels.
ssd asked, Hi Pranav, what is your say on stockes like JP Associates and MRPL? Can I buy them for medium term and what the return % to expect?
PRANAV SANGHAVI answers, I would not look at stocks like JP Assoc at this juncture. I would rather sticks with quality index stocks as the markets are in a bit of an uncertain mode.
spartacus asked, Hello Pranav, what is your take on GTL Infra? Is it a good stock to keep for long term (2-3 yrs)?
PRANAV SANGHAVI answers, I would not look at it currently.
RAJESH asked, I WANT TO BUY 100 SHARES OF HINDUSTAN OIL EXPLORATION CORPORATION (HOEC). AT WHAT PRICE SHOULD I ENTER? WHAT IS THE STOP LOSS? WHAT IS THE TARGET PRICE IN NEAR TERM ?
PRANAV SANGHAVI answers, I am not a technical analyst so cannot give you price targets with stop losses. But you could look at the stock with a 6 month outlook.
Raja asked, I have 200 shares of BHEL bought at Rs.1830. Can I hold them?
PRANAV SANGHAVI answers, Yes you can surely hold on.
rohit asked, should i buy RPL at this stage.??
PRANAV SANGHAVI answers, No I would not get in to the stock at this stage.
pravin asked, WHAT IS THE REASON ONGC HAVE GET SO MUCH UPWARD I.E. UPTO 946 HIGH TODAY EVEBTHOUGH THE ADVERSE CONDITION
PRANAV SANGHAVI answers, ONGC is a oil producing company. With the Crude prices having hit a historic high of $ 130 pr barrel today ONGC is only moving in tandem with the same.
vishal asked, I have 18 Reliance Energy at 2450, shall i hold or sell or accumulate more at this level?
PRANAV SANGHAVI answers, I guess you will have to hold on for a very long time. You could accumalate at lower levels.
devid asked, Hi friend, Why the aban offshore share prices reaches more than triple prices of ONGC share. When compared the EPS, PE ratio, sales, face value prices of aban offshore, it is still less than the ONGC price. But the share price is gone upto Rs 3000.
PRANAV SANGHAVI answers, WIth the steep rise of over 50% over the past couple of months in crude the depmand for oil rigs has shot up tremendously as more companies want to explore more oil to take advantage of the high rates.
Satya asked, I have 30 IOC @750, 100 Allabad Bank @117, 100 Andhra Bank @116, Gail 50 @ 500 tell me what to do next?
PRANAV SANGHAVI answers, You can surely hold on to all the stocks you have mentioned barring may be IOC. As the rising Crude prices and low local fuel prices IOC may take a hit on its margins.
mkverma asked, Hi Pranav what is the future of sangam india, I have purchased 300 @56 and now it is @34.Should I go for averaging or not.
PRANAV SANGHAVI answers, I am sorry I don't follow that stock so I won't be able to help you.
saumya asked, Sir good afternoon. I hold 36 L&T shares @ 2984/- ,13 RCOMM share @ 595 and 18 shares of DLF @ 680/- How long I should hold ?
PRANAV SANGHAVI answers, If you could for another 6 to 12 months I am sure you will see decent returns.
rohit asked, should its grt to invest in reliance industries???
PRANAV SANGHAVI answers, You oculd surely look at RIL but only on dips. RIL is a inex heavy weight and extremely volatile stock. So one must be careful when they buy in.
kamal asked, how much portion of my portfolio i can invest in BHEL, L&T and SIEMENS
PRANAV SANGHAVI answers, I wud allocate not more than 20% in the heavy engineering stocks.
jayeshvartak asked, i hava rajesh export 3000 @ 95 what should i do
PRANAV SANGHAVI answers, Book profits and move in to quality stocks.
b asked, can i buy ntpc in 181.90
PRANAV SANGHAVI answers, If you have an outlook of 6 to 12 months you surely can.
anand asked, Hello sir! What is the future for IDFC & Hindustan construction copmany... can i buy GHCL at present price???
PRANAV SANGHAVI answers, Both IDF an HCC should do well over the next 1 to 2 years time frame. GHCL also could be looked at with long term outlook.
Jagmohan asked, I am holding 800 shares of NTPC @Rs.204 SINCE feB'08. SHOULD I HOLD
PRANAV SANGHAVI answers, Yes.
ssd asked, Which sectors should I concentrate on for 6-12 months with mimum return of 15-20% with medium risk apetite?
PRANAV SANGHAVI answers, I would look at Heavy engineering, cement, steel, banking and telecom. Depsite the scare of real state slow down I would still look at thse sectos.
rohit asked, i bought gujarat nre coke 500 @ 150 shuld i hold it? how long..
PRANAV SANGHAVI answers, Surely hold on with a 1 year outlook, you should see decent returns.
RAJEEV asked, PL ADVISE ON ORCHID CHEM, TATA POWER , CELESTIAL LAB
PRANAV SANGHAVI answers, Orchid Chem and Tata Power can urely be looked at.
meera asked, hi pranav, I am nearing retirement.I have mainly blue chips shares 3.5ls and 12 diversified equity MFs.values have gone down a lot lately.pl advise best investment optionsand how do I go about booking profits at the "right" time?
PRANAV SANGHAVI answers, I would not advise you to book profits on your MF's at this time. There could be a downward correction further but I would rather hold on for 6 to 12 months.
Abhijit asked, What is your overall outlook on Nifty? Thanks
PRANAV SANGHAVI answers, I think it has chances of moving downwards once again but in the very short term the index should remain rangebound and consolidationary mode.
vipul asked, is it right time take big position in stock market, if yes then which stock you recommend?
PRANAV SANGHAVI answers, I would wait for a downward dip before making any large investment in to the markets.
Ankit asked, i have 1000 shares of power grid at 150 so i want to know the future prospectus of this company
PRANAV SANGHAVI answers, You could continue to hold on to the stock. India is a power hungry company and Power Grid has the makings of a NTPC, so I would hold on.
babu asked, Hi Pranav, what is future of stocks(next three months)...nucleus soft, tripex overseas and IFCI...
PRANAV SANGHAVI answers, I don't see any major movements in IFCI. The other stocks I don't follow so I won't be able to help you.
tandon asked, Hi Pranav, I have 10 Aban Offshore @ 3336 Shall I hold sell or Accumulate? Also I have 100 NTPC Shares @ 210 and 40 India Glycols Shares @ 330. Shall I hold?
PRANAV SANGHAVI answers, You could hold on to all the stocks you mention.
sban asked, Hello, I want to know ,at present level market is at lower end or it can go further down in few months, when will it be best time in 2008 to invest
PRANAV SANGHAVI answers, Markets ar a bit weak with no clear direction and very low volumes from the FII's and locally too. There could be a downward correction as the markets are very news sensitive and any negative news either globally or locally could bring the markets down. One has to be carefull befoe investing fresh funds into the markets.
habib asked, Hi Pranav, what is the short term for Wockhardt Ltd.
PRANAV SANGHAVI answers, I think the company ha the potential to give a return of over 25% over a one year time frame.
falgun asked, all r saying market will crash within 1 months to 12000. is it possible in near future?
PRANAV SANGHAVI answers, MOving down to 12,000 looks impossible but January has proved that nothing is impossible when it comes to capital markets in India.
raju asked, HI pRANAV,I got R power @435 shall i hold or sell, and i heard that if we hold R POWER BETWEEN MAY 28 TO JUNE 3RD WE WILL BE ALLOTED 5:3 SHARES CAN U LET ME KNOW
PRANAV SANGHAVI answers, To get a decent return on your stock you would need to hold on for a very long time.
PHANI asked, I want to go for a SIP of 2000/-. Suggest me two good ELSS funds.
PRANAV SANGHAVI answers, I am not allowed to give you specific names offunds but DSP ML, SBI Mutual, HDFC Mutual, Templeton etc all have good schemes on offer.
akpatra asked, please advised me about the future of spicejet, air deccan & purvanakara projects
PRANAV SANGHAVI answers, Arline stocks are always a tricky even in normal times. Currently with Crude touching all time highs I would extremely wary of airline stocks whee an a not so efficient airline could post a massive loss for this quarter due to high fuel prices which form a major portion of an airlines costs.
fghgfj asked, sir, i am shreedhar i decided to purchase the share. what will be the procedure for get shares. tell me pls.....
PRANAV SANGHAVI answers, You will have to open a Demat account and also register and open a trading account with any Broker Member of any of the two exchanges NSE or BSE. Once you have done that then you can purchase stocks from the markets through the broker.
bintu asked, what do you think about praj and ifci
PRANAV SANGHAVI answers, I like Praj with a12 to 24 month outlook. IFCI I am not too bullish about.
mayur asked, i have 63 shares of central bank shall i hold stopck or sell it
PRANAV SANGHAVI answers, I would hold on.
shiv asked, Hi, i am new stock market.can u suggest some good stocks start with which i can hold for 2-3 years.....
PRANAV SANGHAVI answers, You could look at SBI, RIL., L&T etc but with a long term outlook and also on dips. Buy in small parts n every major dip.
vishesh asked, Hi Pranav i have Rel Capital @1800, DLF @ 800, NTPC@ 202, JP Associates @ 278.What is the outlook for next 6 month?
PRANAV SANGHAVI answers, You will have to hold beyond 6 months for most of the stocks you mention. Beyond that time frame you should see profits.
atindra asked, i want to invest around Rs.40000 for a period of 6-7 months .which is more profitable cement or pharmaceuticals.If pharmaceuticals then which stocks are you going to suggest.
PRANAV SANGHAVI answers, In the short term I would look a Pharmaceuticals currently. Cement may not see a large movment due to governmental interference and the rains.
swarup_hait2002@rediffmail.com asked, pls advice about mid cap & small cap. I have seen you only advice about bluse chips . everybody knows about that. require ur advice on small 7 blue chips
PRANAV SANGHAVI answers, I have always mentioned a lot of mid cap stocks also all through my chats. Stocks like IDFC, NTPC etc I have been recommending both from Rs. 75 levels if you have followed my chats from the begining.
ninad asked, i am relatively new to equities i want trade safe? kindly suggest on safe trading
PRANAV SANGHAVI answers, Safe Trading is a paradox. There can never be safe trading in the Stock Markets. But you oculd tsick with frontline quality stocks to be more safe as compared to mid cap or small stocks in this uncertain market stage currently.
PRANAV SANGHAVI says, Well it has been great chatting with you all. Hope to catch you'll next week. Bye for now.
(Due to circumstances beyond our control, date and time of chat may change)
