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Questions poured in from every corner for market expert Pranav Sanghavi during the hour long chat on the Budget day. Sanghavi handled each query with familiar ease and expertise.
Here is the transcript:
PRANAV SANGHAVI says, Hello good afternoon everyone. Welcome to the chat. Let's begin.
alok asked, Hi Pranav, How MAT will affect the big IT companies?? like Infosys , TCS etc.??
PRANAV SANGHAVI answers, at 2007-02-28 16:00:58I dont think it will have any effect any effect as these companies are already paying a tax higher than the MAT requires them to. It has been misread by the market and don't worry.
anu asked, is it s good time to enter market to buy
PRANAV SANGHAVI answers, If you are a long term investor, yes you could.
alok asked, will the market bottom out at dis level. shoudl one go for buying at dis level??
PRANAV SANGHAVI answers, Well the markets could fall a bit further before they stabilize. You can always buy in pyramid fashion.
Ujwal asked, Hi Pranav, At this stage and with this kind of Budget, what is the future of Sugar Sector i.e. Bajaj Hindustan, Balrampur Chini & Dhampur Sugar?
PRANAV SANGHAVI answers, I dont think the budget has any negative impact on the sugar sector in general but they are trying to contorl the commodity prices to keep inflation in check. So they will not permit the sugar companies to sell at very high levels.
Ziya asked, Hi, can you suggest good buy for 2 to 3 months period?
PRANAV SANGHAVI answers, Hi Ziya, any of the frontline stocks that I have been mentioning in my previous chat are a good bet. Any quality stock that you wanted to buy but were not able to because of high prices could be looked at now.
Ziya asked, Is it time for sell IT shares?
PRANAV SANGHAVI answers, I dont think so. May be the smaller IT companies get affected with MAT but definately not the frontline stocks. Hold on.
Alob asked, Harrisons Malayalam , how do you view this stock in light of the news that RPG group is restructuring this group.
PRANAV SANGHAVI answers, I dont follow that stock so will not be able to help you.
MCBC asked, is there any increase in the Short-term CGT rate ?
PRANAV SANGHAVI answers, No there is no change in the Capital Gains Tax.
manu asked, what r the prospects of Gujarat ambuja & icici bank
PRANAV SANGHAVI answers, I think in th eshort term the cement stocks may underperform the markets but in the longer term they will do well.
sansarg asked, Hi This has relation to today's budgetary provision on Dividend Distribution Tax. Does this apply to equity mutual funds? If yes, does it differentially impact Growth and Dividend options? You must reply to this one.
PRANAV SANGHAVI answers, Yes it does apply to them. It will affect the fund itself and not the investor.
akky asked, hi pranav
PRANAV SANGHAVI answers, Hi Akky, what is your question?
Avik asked, Hi Pranav, is it time for cautious approach in the stock market? Does it still look to be overall bullish? Should we take some downward protection at this monet?
PRANAV SANGHAVI answers, Hi Avik, I think the short term will still remain a bit choppy as I had mentioned two weeks back. But on a longer term I am pretty sure that the India Story is intact.
gyani asked, hi Pranav, can the policies in the budget stop market from falling any further...or indian markets also going to follow the globe..??
PRANAV SANGHAVI answers, Hi Gyani, I dont think the FM has said anything which is very detrimental to the markets barring the Dividend tax. But the global markets are also affecting our markets and all the emerging markets have dropped more yesterday than our markets have today.
Ziya asked, Is there any chance to recover sensex from this level for short term?
PRANAV SANGHAVI answers, I think eventually the markets will recover. Maybe the March end results declared could be the trigger in April or it could be something else 6 months down the line but I think the markets will recover.
bobbydeol asked, Hi, do u think HLL will move up to around 250 in the next 6 mths?
PRANAV SANGHAVI answers, I doubt that.
Ujwal asked, When Tatatele Services will start moving up?
PRANAV SANGHAVI answers, When there is some positive news about the company.
bobbydeol asked, Please suggest a couple of shares that have very good chances of giving good returns
PRANAV SANGHAVI answers, I think most of the frontline stocks have been hammered pretty bad. You could look at the frontline tech stocks, infrastructure stocks etc.
bhabani asked, hi pranav what will be the position of it shares in coming few month
PRANAV SANGHAVI answers, Hi Bhabhani, I think you don't need to worry about the frontline IT stocks. And MAT will have a marginal impact on the smaller ones too.
akkyboy asked, so what do u think of the budget?
PRANAV SANGHAVI answers, I think the government has given more focus on the educational and farming sectors. And he has left the Service Tax and Capital Gains tax untouched.
Sridhar asked, WHAT ABT HCL INFOSYSTEMS SHARES?? ANY CHANGE FOR INDIAN IT HARDWARE INDUSTRIES??
PRANAV SANGHAVI answers, It could be negatively impacted but marginally because of MAT.
Ram asked, Hi, outlook for rel com
PRANAV SANGHAVI answers, I think it will do well in the coming future.
atul asked, what is happening to sugar stocks
PRANAV SANGHAVI answers, I think they will move sideways for a while.
anilk asked, what is the budget fineprint which has resulted in steep fall in Construction companies like gammon, IVRCL etc.Has the market overdiscounted the budget provisons
PRANAV SANGHAVI answers, I think the construction companies will get valued more closer to their performance rather than value of their land banks which is more realistic and fair to the investors.
Gopal asked, "Rate of dividend distribution tax to be raised from 12.5 per cent to 15 per cent on dividends distributed by companies." Is this going to effect the Dividend distribute from the Mutual funds House?
PRANAV SANGHAVI answers, Yes it will.
DS asked, Hi, which sector will be benefited wrt budget provision.
PRANAV SANGHAVI answers, Hi DS with the current budget companies in the educational and farming sectors should do well.
maridi asked, WHat are the future prospects of Rice Millers in KRBL, Kohinoor Foods etc?
PRANAV SANGHAVI answers, Well Rice prices will be monitored. Government has already disallowed all Future contracts in Rice and Wheat.
harish asked, what shares to buy on the basis of budget?
PRANAV SANGHAVI answers, Rather than on the basis of the budget I would go on the basis of the valuations and PE ratios. Mainly the tech sectors, infrastructure sectors etc.
ramudupa asked, what next .will the market recover the fall.If so when ?
PRANAV SANGHAVI answers, Markets could take a while before they move into a bullish phase. There could be sideways movements and consolidation before it moves up.
Sanju asked, What is your view on the market? will it fall more?
PRANAV SANGHAVI answers, It could fall a bit further before it recovers. Maybe not immediately as it has corrected quite sharply over the last five trading sessions.
Felix asked, Good evening Mr. Pranav, Please tell me how long this (sensex down)position will be?
PRANAV SANGHAVI answers, Good evening Felix, I don't think it will remain for a long time maybe another month or two.
Felix asked, Do u think budjet will attect stock market.
PRANAV SANGHAVI answers, A lot of points have unknowingly been percieved to be bad and the markets did fall but all the global markets were down yesterday so a fall was anyways expected.
RITESH asked, HI
PRANAV SANGHAVI answers, Hi Ritesh.
moneyLoser asked, Hi Pranav, actually cable stocks are going down. I am not into buying as of now, would it be worth buying a lot ? I have made my purchases a month ago, so currently am under losses.
PRANAV SANGHAVI answers, Import duty on plastics has been reduced so there could be a marginal benefit to the cable manufacturers but otherwise there is no major impact.
jogi asked, hi pranav, what do you think the future trend of telecom stocks, its been rocking from past 3 months, do you expect some deep correction in this sector??
PRANAV SANGHAVI answers, I dont think so.
ashok asked, hi what is the overall impact of the fudget on education sector? no emphasis given on the higher education loans that is being taken now a days extensively.also for studying abroad what is the emphasis given? the education should be made open to all not not only focussing on certain class of people?
PRANAV SANGHAVI answers, The education of the lower income group and that of the SC and ST has been given an impetus through the budget. And I think, these classes form the vast majority of our country not the upper class who opts for post graduation.
kpmurali asked, Do u think it is better to hold cement stocks after todays budget and what should be strategy post budget
PRANAV SANGHAVI answers, If you are a really long term investor then you could.
GIGIMI asked, WHAT ARE THE PROSPECTS OF TATA ELXSI AND FOUR SOFT. WHICH SCRIPT IS A BETTER BUY
PRANAV SANGHAVI answers, I would much rather stick with the frontline tech stocks.
Satya asked, I invested in Relcom is it better to continue ot is it better to sell
PRANAV SANGHAVI answers, I think you could hold on.
venkatgg asked, hi, can you tell me what are the infrastructure stocks that we can pickup now. And also can you tell me about Lakshmi Machine works i have 50 @ 3800, should i hold or sell
PRANAV SANGHAVI answers, You could look at IDFC and IVRCL. You could hold on to LMW.
vijay asked, What is your view on India Cements? Is it a good buy at this level?. What's the impact of today's budget on Cement Industry?.
PRANAV SANGHAVI answers, Look at it only with a 1 year outlook. The impact is not favorable.
eaaee asked, Can we buy infosys at this level
PRANAV SANGHAVI answers, Yes you could.
arun asked, how abt adding nagarjuna constructions at this level ?
PRANAV SANGHAVI answers, I would wait for futher dips.
budgetpra asked, Whats your view on SEsa Goa ? Hold or sell
PRANAV SANGHAVI answers, I think is its surely a hold.
Rabi asked, Do you think in this inflation enviornment fm could hav done better other than asking people to save longterm?
PRANAV SANGHAVI answers, I think all things considered he's given a good budget.
archana asked, hows tata motors to buy now???
PRANAV SANGHAVI answers, I think it is a good bet for the long term.
akalbadike bhains asked, hi pranav .... nice to see the original here... however i think people here are enjoying your chat. what do you think of the current share levels.. how much will it dip in next few days or months
PRANAV SANGHAVI answers, It could easily break the 12500 or 12200 levels if the sentiment remains negative.
mahesh_gec asked, what abt IDEA IPO. keep it or sell
PRANAV SANGHAVI answers, I think you can hold on.
ramaiahprabhakar asked, HI PRANAV IS IT A GOD BY FOR INDIA CEMENTS NOW? ONE MORE SCRIPT IS tamilnadu news print?
PRANAV SANGHAVI answers, I don't think cement sector would peroform in the near term but for the long term I don't see a problem.
Rabi asked, Hi Pranav how do you see the prospect of the mutual funds in the wake of budget 07?
PRANAV SANGHAVI answers, I don't think they will get affected very marginally.
Aftab asked, Hi Pranav, What is the market out look for one month ? bullish or bearish ?
PRANAV SANGHAVI answers, I think it will be volatile but a bit on the bearish side.
nitin asked, any comment on home loan related co. i.e. HDFC/ICICI BANK/LOK HOUSING in budget 2007
PRANAV SANGHAVI answers, With a rising interest rate scenario they may underperform.
shiva asked, what about Bank of Baroda now?
PRANAV SANGHAVI answers, Its a good bet for the long term.
atul asked, hi, should i invest in fertilizer stocks
PRANAV SANGHAVI answers, You could with the push to the farming sector they might perform well.
chotu asked, Pranav , I have a feeling that stock market is a place where small invertor should not enter ,
PRANAV SANGHAVI answers, Unless one studies the market well one should not whether a big or small investor.
rakshas asked, hi pranav how r you???
PRANAV SANGHAVI answers, Hi Rakshas, I am fine thank you. And yourself.
lalit asked, hi pranav.............what about the scripts having alembic 500 @72, karurvysya -100@292/- klgsystel 200 @ 375/- nevylilg 150 @80/-. should i hold or exit. if hold , for how much time
PRANAV SANGHAVI answers, I think you can hold on to these stocks.
murli asked, can we buy sundaram fastners & sundaram finance at these levels
PRANAV SANGHAVI answers, Buy on dips in pyramid fashion but for a long term outlook.
naresh asked, I had 50 HLL @ 250 should i hold?
PRANAV SANGHAVI answers, I think it will not perform in the short term.
beast asked, your views on bank of rajasthan please?
PRANAV SANGHAVI answers, Barring its NPA issue I think it is a decent mid cap bank.
hariomudyog asked, hi suggest me some good stock with a time frame of six months
PRANAV SANGHAVI answers, As mentioned earlier you could look at the frontline stocks which have corrected sharply.
ranjan asked, what the increase in price of Reliance Natural Resource Ltd(RNRL) in future?
PRANAV SANGHAVI answers, Longer term it will move up steadily. I can't give you a price target as I am not a technical analyst.
Sanju asked, Can you suggest some good stocks in e - governance and irrigation sector?
PRANAV SANGHAVI answers, Jain Irrigation is in the irrigation sector which could benefit from the budget.
fbt asked, what is the impact of fbt on esops
PRANAV SANGHAVI answers, Basically ESOPS when excercised will be taxed. It is not an immediate effect but as and when the ESOPS are given and then actually excercise and at what rate.
vtd asked, i want to sell some infy shares. when is the good time?
PRANAV SANGHAVI answers, It would have been a good time about 2 weeks back.
ranjan asked, what about Indian Hotels shares ,i had 50 @869/-.what to do now?
PRANAV SANGHAVI answers, You can hold on with a longer term outlook.
Smarty05 asked, Hi, Is it safe bet at the moment to reduce holdings on IT Stocks (Infy,TCS) and invest in Telecom stocks like Bharti, R Comm?
PRANAV SANGHAVI answers, I dont think so. If at all you should increase your holdings.
selective asked, If my earning is more than 10 Lacs per annum. Is there any tax benefit compared to last years budget?
PRANAV SANGHAVI answers, If it is an SME company then yes.
vil asked, do u think market has over reacted and over corrected for no significant announcement by our FM
PRANAV SANGHAVI answers, The markets have reacted to the Chinese and US and other emerging markets fall also and not only due to the Budget.
PRANAV SANGHAVI says, Well its time for me to leave. Hope to see you all next week. Bye.
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