'It was a financial Disneyland that corrected'
After a two-week absence, Ramesh S Damani is back on Stock Talk. He feels that the Indian markets are paying a huge price for the speculative excesses of the last six months. But he expects the market to take a re-look at the old economy stocks.
Mr Ramesh Damani (Wed May 3 19100 6:5 IST)
Hello, everyone. Nice to be back. I was in Singapore for a few days. Thanks for joining in.
Hari (Wed May 3 19100 4:15 IST)
What is the reason for the continued fall of BSE unlike the NASDAQ which has recovered?
Mr Ramesh Damani (Wed May 3 19100 6:6 IST)
Hari - Indian markets seem to be paying a huge price for the speculative excesses of the last 6 months. Stocks have corrected 80-90%. This has unnerved the market.
raju (Wed May 3 19100 5:12 IST)
Can i hold Himachal Futuristic at Rs 834 and Ranbaxy at Rs 550 or sell
Mr Ramesh Damani (Wed May 3 19100 6:7 IST)
Raju; HFCL was speculative at best and the speculation seems over. Stock distribution happens when a price falls. Ranbaxy seems okay at lower prices.
ananya (Wed May 3 19100 5:24 IST)
since infrastructure projects seem to be the only development possible in india now, do ACC, Reliance, Tisco have a better future than the IT shares now?
Mr Ramesh Damani (Wed May 3 19100 6:9 IST)
ananya - market will relook at the old economy stocks. Real sales and real profits. If you notice SBI, Reliance have been oceans of stability.
bilgates (Wed May 3 19100 6:9 IST)
what do u think of yr old favourite usha beltron at 200.00
Mr Ramesh Damani (Wed May 3 19100 6:10 IST)
bilgates- In the current market turmoil it is not on my buy list.
alok (Wed May 3 19100 5:44 IST)
Welcome back Mr Damani, you said today on TV that there seems to be some bad news in the offing. but after today's recovery do u continue to hold that view?
Mr Ramesh Damani (Wed May 3 19100 6:12 IST)
alok - when market falls without bad news in a bear market, it is very worrying. No one has an explanation. Sometimes this spells coming bad news. That was my call.
vinoo (Wed May 3 19100 5:37 IST)
Mr. Damani why is SEBI so impertinent for change in the rolling settlement...
Mr Ramesh Damani (Wed May 3 19100 6:15 IST)
vinoo- I think we are not ready for a rolling settlement. Despite global crash BSE, NSE have not had a problem. Once the futures market develops we could move to a rolling sett. It's too early for now.
dhawan (Wed May 3 19100 6:15 IST)
whether nasdaq is now following the pattern of indian stock markets? What happened to ranbaxy, probable reasons for the downfall in the market rate may be explained
Mr Ramesh Damani (Wed May 3 19100 6:16 IST)
dhawan- nasdaq is not following India - that much I am certain. Market is paying a huge price for the speculative excesses we witnessed. It was a financial Disneyland that corrected.
teleport (Wed May 3 19100 6:14 IST)
Is stock market a real reflection of the health of country's economy as well as that of a company?
Mr Ramesh Damani (Wed May 3 19100 6:22 IST)
teleport-in the short run, the market is a popularity machine. The prettiest, sexiest one wins. In the short run, it is a voting machine. Remember that. Capital markets are the best way to allocate resources.
Srinivas (Wed May 3 19100 6:16 IST)
What effect is index future supposed to have on the stock market?
Mr Ramesh Damani (Wed May 3 19100 6:17 IST)
Srinivas- investors will be abe to hedge risks. More effecient.
vinoo (Wed May 3 19100 6:16 IST)
will sebi rollback rolling settlement?
Mr Ramesh Damani (Wed May 3 19100 6:18 IST)
vinoo - i would say yes.
anil (Wed May 3 19100 6:15 IST)
sir,what you think of Birla Ericsson
Mr Ramesh Damani (Wed May 3 19100 6:19 IST)
anil - they will do well as optic fibre demand is surging. However it is a cyclical business and does not command a high PE
Srinivas (Wed May 3 19100 6:18 IST)
Are you expecting a ceiling to be put even on index futures?
Mr Ramesh Damani (Wed May 3 19100 6:19 IST)
Srinavas- no ceiling has been set by SEBI.
teleport (Wed May 3 19100 6:18 IST)
will online trading produce another Harshad Mehta ?
Mr Ramesh Damani (Wed May 3 19100 6:19 IST)
teleport- many of them???
sid (Wed May 3 19100 6:19 IST)
has india delinked itself from NASDAQ?
Mr Ramesh Damani (Wed May 3 19100 6:20 IST)
sid- No. but the correlation is not 1.0
vinoo (Wed May 3 19100 6:21 IST)
What impact will the withdrawal of export income tax status over a period of ten year than 5 years have on the markets, which the FM announced today? Also, the impact of tax on ESOP to be considered as capital gains and not as a perk?
Mr Ramesh Damani (Wed May 3 19100 6:24 IST)
vinoo - short term positive. However i believe that the software industry should be taxed like everyone else. They must survive in a competitive environment.
srinivas (Wed May 3 19100 6:23 IST)
Will the online trading (thru' internet) totally wipe of all the small scale brokers?
Mr Ramesh Damani (Wed May 3 19100 6:25 IST)
Srinvas - looks like that. Look for another career every 10 years or so.
tirumal (Wed May 3 19100 6:25 IST)
What do you think of Silverline?
Mr Ramesh Damani (Wed May 3 19100 6:26 IST)
tirumal - I am not a believer in the stock.
shriprakash (Wed May 3 19100 6:22 IST)
Today in CNBC you have hinted about some unpleasent news expected against stock market. What is that?
Mr Ramesh Damani (Wed May 3 19100 6:26 IST)
shriprakash - refer to my earlier answers. Though market held at 4250 that is good. If we break 4250 its probably 3800
Srinivas (Wed May 3 19100 6:26 IST)
Will SEBI be introducing strict measures against listings of DOT COMs so that the one with a real good business model will get access to investors' money?
Mr Ramesh Damani (Wed May 3 19100 6:28 IST)
Srinivas - that's what they should do. But do not discourage young entrepreneurs with crazy ideas. Bill Gates thought everyone should have a PC in 1980. Clearly visionaries are crazy.
tirumal (Wed May 3 19100 6:27 IST)
how about Rolta Sir
Mr Ramesh Damani (Wed May 3 19100 6:28 IST)
tirumal - rolta is best avoided.
Mr Ramesh Damani (Wed May 3 19100 6:29 IST)
thanks for joining in. I have to leave. See you next Wednesday.
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