MUMBAI: Mad About Markets is your show, it's about your portfolio and what the best analysts think of it. It's about market moves and what they mean for you, and whether you should buy, sell or hold a stock.
Today's discussion covered GVK Power, Rel Power, NTPC, Power Grid, ICICI Bank, Bharti Airtel and L&T.
D D Sharma, senior vice president (research), Anand Rathi looked at the stocks from the fundamental side, and Hormuz Maloo from Geojit Financial Services gave the technical perspective...
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I hold 100 shares of L&T @ Rs 822. What should I do?
Sharma: I think he can hold... I think L&T is a good company having good order book positing.. there were reports that the government is planning to give massive refinance of Rs 75,000 crore for the infrastructure projects... you also see the liberty given to infra firms to borrow money from the overseas markets... relaxing the cap on overseas borrowing will be very positive for the infrastructure space... if the infrastructure gets pushed, L&T will be one of the major beneficiaries... So I think it is a good stock to hold.
Maloo: It is certainly a hold. The stock is a very good long-term investment, and I wouldn’t recommend selling at this price. I thin it is a little too early to average.. right now it is just a hold...
I own 50 i-flex at Rs 510. What should I do?
Sharma: i-flex is a product company catering mostly to the banking and financial services sector. in the short-term, the demand from the sector will go down significantly... therefore it is advisable to switch to some other sector or some other stock.
Maloo: I think the point is that the stock has declined from Rs 2,600 level right down to the current price. I think it might be a good idea to hold on for the moment... I would not advice averaging it because it has fallen steeply from the purchase price.
I own Reliance Capital @ Rs 593. What should I do?
Sharma: Reliance Capital is into the AMC business, insurance business and also in a big way in broking business... the businesses are not in the right shape now due to the financial crisis and the domestic market meltdown.... Overall, the company is very good,it is expanding very well, it is also going global... Therefore, over the long-term, I think, one can hold the stock.. you can also average if the price falls....
Maloo: Technically, it is on a decline with resistance around the Rs 700.... it is now too late to sell... if it comes down more, you can average and keep it as an investment....
I own 500 shares of Suzlon @ Rs 65. Should I hold or sell?
Maloo: Like most stocks, it is in a downtrend and has resistance around Rs 75. In the short-term, there is no relief.... it has fallen from Rs 450... I think probably one can dip into the stock if one wants to. it will take some time to recover until the company sorts out problems. It is a hold for now.
Sharma: There were a couple of concerns.faulty blades had to be replaced... so they had to spend a lot of money to replace the blades... second is the stake of REpower, which is with another company. Once they are able to acquire that stake, they can use the technology of REpower, they can consolidate their accounts with REpower.... all these things are still pending. I think, over the next six months, the problems would be resolved... If you willing to hold, you can hold it for a year.
I own 5000 GVK Power. Should I hold or sell?
Sharma: It is a significantly big company... overall, the outlook of the company is very good... can hold for the long-term...
Is it the right time to invest Rs 5 lakh in the market?
Sharma: If one is willing to invest for the long-term, there is no point in waiting... one can stagger the investment... one can invest every fortnight or every week so that he can get the benefit of volatility... if he is a defensive player, he can invest in pharma, infrastructure and banking.
Maloo: What he can probably do is start buying now... we are already 60% off from the high... if any stock bought declines, he can average... so his price remains near the bottom. He should be willing to spread out his investments and also look for long-term investment.
Should I invest in Hindustan Zinc at the current level?
Sharma: Going by the global meltdown in the metal sector, I don’t think the metal sector will revive over the next two-three years. if you are willing to risk your money, go ahead... otherwise, I would not suggest investing in Hindustan Zinc.
Maloo: It has resistance around Rs 445... he can buy only if he is willing to average it out at lower price... the best thing is to wait for some more time... I think it will decline further from the current level.
I hold 300 ICICI Bank at Rs 441. What should I do?
Sharma: If one is willing to stay invested for two-three years, ICICI Bank offers significant value and growth to the investor... the stock may not perform in the near- to medium-term but it will definitely outperform the market over the long-term.
I hold 100 Bharti Airtel at Rs 663. What should I do?
Maloo: Technically, it has resistance around Rs 750... we shouldn’t really except it to go against the market... having said that, it is the best in the telecom space at the moment... it is the only cash generating company... so one can invest at the current level.
Sharma: It is one of the biggest players in the telecom sector and it is a cash-rich company and growing very well. I think the outlook for Bharti seems to be reasonably good... one can stay remain invested.
Anil Chopra, chief executive officer, Bajaj Capital, answered queries on mutual funds.
I own DSML Gold Fund. How long should I stay invested?
Chopra: After the global meltdown, DSML Gold Fund has also got impacted... one should always remember the time horizon and know how much of the total portfolio is invested in DSML Gold Fund... it should not be more than 5-10%... unless we have a complete portfolio, we can't comment... he must stay invested for at least five-seven years.
I have invested in HDFC Top 200 and Sundaram BNP Paribas Select Focus via SIP. How long should I stay invested?
Chopra: They are both large cap funds and they are both quite good so far but the time horizon has to be a minimum of five-seven years... SIP is the best strategy to invest and grow the corpus.... all experts expect returns in the range of 15% plus if an investor stays invested for at least five-seven years.
I have been investing in ICICI Prudential's ELSS ULIP Plan Lifetime for the last three years. Should I continue with the investment?
Chopra: ULIPs are normally life insurance plans, and ULIPs are normally good if your time horizon is at least 20 years or higher because expenses tend to be much less on your pocket... continue to pay premiums every year..
I hold Birla Sun Life Equity-Linked FMP Series. The fund has underperformed in the last few months. What strategy should I adopt?
Chopra: Equity-Linked FMPs are recent innovations where your capital is indicated to be protected... these are close-ended funds... whenever you are invested in close-ended funds, whether the period is three or five years, you should not be looking at between because it does not make sense.. whatever your time period is, capital is not only protected but it is expected to grow because the slowdown is not going to remain forever... by the time the scheme matures, you should be making decent returns.
I would like to invest Rs 20,000 in MFs via SIP. Should I invest in one fund or many?
Chopra: It has to be four different schemes of Rs 5,000 each rather then one scheme of Rs 20,000... you must also split your SIP between large cap and mid cap and infrastructure funds... out of four SIPs, we would suggest to go with two SIPs of Rs 5,000 in large cap funds and one in mid cap and small cap mix and one in infrastructure.... |
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