After two days of mayhem in stock markets what should the small investor do? Deven R Choksey, CEO & MD of KR Choksey Shares and Securities Pvt. Ltd, advised IBNLive readers in a live chat on Tuesday.
Rushabh: What are your views on the power and cement sector?
Deven R Choksey: Power cautious from valuation perspective but with the latest fall start looking selectively like NTPC, Tata Power. Cement, ACL, Grasim.
Swaminathan: Is the Indian economy and the share market so fragile now under UPA Government? Why should it react so nervously to the US market when the Rupee is strengthening day by day. We never saw such a shocking slide during the NDA rule?
Deven R Choksey: Please keep politics out of it. All politicians, whether of the NDA or UPA, have done a good job to keep economics and policy separate from politics.
Sandeep Gupta: What is the real cause of the Sensex falling?
Deven R Choksey: It is a systemic problem that started with global weakness.
Pradeep: The market crash is due to F and O segment rather than delivery? Why can’t we eliminate F&O completely and trade only in delivery?
Deven R Choksey: Don’t use F and O as trading market. Use it for hedging and you will be a lot happier.
The Arch: I had been watching market for some time now and was about to make a maiden foray into the market when the prices came down crashing like a house of cards. What would be the right approach for me? My advisor says this is a temporary phase and will veer out soon.
Deven R Choksey: Your advisor is right.
Reader from Houston: The way Sesex ran north, and only north, in the last two years it was obvious that a major correction was due. Technicals always pointed to a 30 percent correction from the 2,0000 levels. With US markets still showing no signs of bottoming off are we looking at Sensex at 12,000 to 13,000? In such a scenario for an NRI, who has never invested in Indian markets, what are the mutual funds to start with?
Deven R Choksey: Be with good portfolio management service providers who can manage your portfolio based on your risk-return profile.
Uddhavraj: Why are investors panicking about recession in US economy? Our economy is safe and sound and I am still optimistic than Sensex would cross 20K in next 2-3 months? How do you see the next three-six months for market performance in India?
Deven R Choksey: Normalcy would be restored. We should see new highs within FY09.
Auniyal: IT stocks are trading very low, is this the right time to buy them or should I stay away from buying with the speculation of US slowdown they may fall more?
Deven R Choksey: You can consider buying a part, now.
Vineet Kumar: I have recently invested in a four-star and five-star rated MF on 3 January 2008 and I have lost 20-25% since then. Is my money gone forever? Secondly if I invest now, when the NAVs will be lowest in a month of so, will it help in recovering some losses?
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Deven R Choksey: Yes.
Tulasi Ram Reddy: How much time do you think the market will take to recover the loss?
Deven R Choksey: Do not worry about time. Get into good stocks with good earning visibility and professional management.
Key: What are the concerns that you foresee in the Indian economy and would like the investors to remain cautious about?
Deven R Choksey: We are bullish about the Indian economy.
Deep Ghatak: What effect will the budget have on the market?
Deven R Choksey: Positive.
Rajesh: Looking at the past we know that it happens that sometimes market goes down and we all know that it will again come up. Then why we are saying it as market crash, is it a crash?
Deven R Choksey: Guessing (recovery) time would be a bit difficult but we will recover for sure.
Kash: Are the smaller public sector banks still a good buy?
Deven R Choksey: Yes.
Avinash Zende: Is it a right time to enter into the market?
Deven R Choksey: Anytime is good time, provided you are in fundamentally good stocks.
Ahmed: Will the markets ever gain the heights it had?
Deven R Choksey: Yes
Govindarajulu: Can we trust Reliance and hold it for a long term?
Deven R Choksey: Yes.
Sandeep Gupta: I have a portfolio of around Rs 3 lakh and just started in October 2007 and I was thinking of withdrawing. Suddenly the market crashed, please guide: should I quit or wait as I require funds in the second week of February 2008?
Deven R Choksey: Wait.
Sampath: Is it good time to buy Suzlon, Jaiprakash Assoc., Punj Lloyd and Unitech?
Deven R Choksey: Unitech for sure.
G K Kashyap: Does the average Q3 results too have a say in the meltdown? Isn’t it a mere correction albeit a harsh one to digest? How will major IPOs impact the market in the near future? Will the show have impacts on the listing prices of the recently oversubscribed IPOs?
Deven R Choksey: Wait and see.
Narinder Sethi: Are we in a bear market?
Deven R Choksey: Not yet for sure.
Ashok Kumar: I have invested for long term, will this market clash affect me?
Deven R Choksey: Short-term volatility never comes in the way of long-term gains.
Prashant: Which sectors should one focus in case we want to buy now?
Deven R Choksey: Banking, Auto, real estate.
Sapan Babbar: Can I buy Reliance Communication and Reliance Energy at this level?
Deven R Choksey: Reliance Communication, yes.
Prema Ramakrishnan: I hold a sizeable number of ICICI Bank shares. Since the fall in this scrip is nearly Rs 400 what advice could you give me regarding holding these shares? Should I wait for some time as I am not a trader and not immediately in need of funds?
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Deven R Choksey: Hold for sure. It is a good story, particularly with I-sec slated to list within next four-five months.
Sampath: Two weeks back my portfolio was in profit and now it is in deep loss. What I should have done in the last three market days? Should I have sold and book loss and held it for recovery? Or booked some profit last week...thanks
Deven R Choksey: Hold for now and wait for recovery?
Naveen: What would you think would be the immediate support level for Sensex and Nifty?
Deven R Choksey: Current low should hold.
Kaushik Mukherjee: Should I hold Petronet LNG?
Deven R Choksey: Yes, consider adding at CMP.
Srikanth: What about TCS? May I hold the stock?
Deven R Choksey: Yes, can add too.
Indrajit: I would like to invest Rs 4 lakh. Kindly tell me which company or companies I should invest and how much for each? This is investment for five years.
Deven R Choksey: ICICI Bank, SBI, IDBI, Mah-Life, DLF Maruti, Reliance Communication.
Amit: What will be the effect of this fall on rupee and IT industry?
Deven R Choksey: I think that is more or less already in price of IT sector. U can start looking to buy those. Particularly after these two-week.
Deepali: What are the good stocks to buy now? I am a long-term investor?
Deven R Choksey: ICICI Bank, Maruti, DLF.
Sampath: If it is a falling market, is it advisable to sell our holding even if our portfolio is in loss or hold?
Deven R Choksey: Don’t sell in panic. Add good stocks and if you are fundamentally sound stocks, do not worry.
Pramod MJ: What’s your say on Reliance Petro fundamentally?
Deven R Choksey: The company is yet to make a single rupee of business profit to talk about it fundamentally. The biggest positive though is (the company’s) management capability and its execution skills.
S R Penuballi: Will the market pull back to the levels of 2000?
Deven R Choksey: Slowly but surely. Wait for budget run-up, you may be positively surprised.
San: Is this the much talked about correction or are we in for more surprises?
Deven R Choksey: Your guess is as good as mine.
Pramod MJ: It took six trading sessions for the market to melt down. Is there a possibility for market to surge back with the same speed or will there be a slump in the market for some time?
Deven R Choksey: Not at the same speed perhaps but we will see recovery sooner than later.
Sasidharan: If the India story is independent how come our markets are following world markets?
Deven R Choksey: FIIs from all across the world invest here. Some foreign losses are probably made good by selling profitable position in India.
Nelesh: What is your outlook for real state? Can the real estate regain its valuations in coming two-three months?
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Deven R Choksey: Two-three months? Can’t say but DLF, Unitech, Mahindra-Life look extremely attractive. Buy for medium to long term.
Sukumar Dutta: Should I keep up my portfolio? I have already lost 50 percent. How much do you think the market will recover?
Deven R Choksey: Market will recover sooner than most expect. If you are in fundamentally good stocks, stay put and don’t exit in panic.
Ashokanu: What about Reliance Natural Resources Ltd? Buy sell or hold ? Why did it crash heavily?
Deven R Choksey: No comments. Was the rise justified in the first place?
Suresh: Hi, is this the right time to start buying? If yes, which sectors do you recommend?
Deven R Choksey: Yes. Banking, select real estate like DLF, Unitech and Mahindra Life.
Venu: How can we predict the market ups and down? Are there any areas where we can concentrate where share market can be depended upon?
Deven R Choksey: Be with a good financial advisor or invest through SIP of MF. Don’t try to predict timings of market fall or rise.
Laksman: What is the real cause for the Sensex falling?
Deven R Choksey: It is a temporary problem caused by systemic issues. Don’t worry, soon the clouds would go off.
Sudha: Which stocks can we buy at this stage, or should we wait?
Deven R Choksey: Reliance Communication, Maruti, Reliance, ICICI Bank.
(Deven R Choksey is the CEO & MD of K RChoksey Shares and Securities Pvt. Ltd, an equity brokerage services company that has presence in over 100 locations across India. A former director of the Governing Board of BSE and Director on Governing Council of the Derivative Stock Exchange, Mumbai, Choksey has over two decades of experience with the market. )
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