'The market is falling of its own weight'
The Ramesh S Damani chat started on a day when the stock market was extremely choppy. He called it a financial Disneyland and explained that the merry-go-round may be taking a break! He avoided making new recommendations as he expected the market to fall, which it did the next day. The tech-savvy stockbroker did not let rediff.com staffers type for him and fired away at his keyboard just like he would execute his orders.
Mr Ramesh Damani (Wed Mar 8 2000 5:53 IST)
Hello guys, thanks for joining in. Let's start.
rishi seth (Wed Mar 8 2000 5:36 IST)
Dear sir, I have been a constant listener of your views on the TV. Please let me know a good share which will grow fast.
Mr Ramesh Damani (Wed Mar 8 2000 5:54 IST)
Rishi, thanks. The market is probably headed down so let's watch it a while before recommending new stocks.
Makarand Vidwans (Wed Mar 8 2000 4:17 IST)
Hello Sir, I watch CNBC Asia's India Business Day regularly and respect your views expressed in some of these programmes. My question to you is that if the present government loses in the voting on the RSS issue, will it have any negative impact on stock market? Second, if any of the subsidy cuts are rolled back what will be the market reacion?
Mr Ramesh Damani (Wed Mar 8 2000 5:55 IST)
Dear M Vidwans - Both would have negative impact on the market. Mr Sinha has not controlled expenditure so new subsidies would be a bad idea. The RSS issue is a loose cannon though I believe it will be resolved.
kamleshkhara (Wed Mar 8 2000 3:22 IST)
What's going on? Why is the market so volatile? How are cos like TISCO/ACC doing? Is it not worth buying ACC at this rate as 7% stake is been bought at Rs 370 by Gujarat Ambuja Cements? What is your view?
Mr Ramesh Damani (Wed Mar 8 2000 5:57 IST)
Mr Kamlesh - we are aping USA. The popular funda is that we are creating 2 economies - a digital and a brick. However, I believe patient investors will continue to make money in the old stocks from these levels.
snrazik (Wed Mar 8 2000 2:58 IST)
i feel biotech shares are about to hit the roof. Pls comment.
snrazik (Wed Mar 8 2000 3:1 IST)
also send me suggestions on the low profile infotech shares that r about to boom
snrazik (Wed Mar 8 2000 3:2 IST)
Is it a bubble which is gonna burst one day?
Mr Ramesh Damani (Wed Mar 8 2000 6:0 IST)
snrazik - it does look like a bubble to me. A great biotech company has still to get listed. However keep looking - the next boom will certainly see biotech companies being listed.
raghav (Wed Mar 8 2000 6:0 IST)
sir, i believe the broker outstanding on the BSE is huge. How much do you think it is approximately now, and what can be done to cut down risk in this regard?
Mr Ramesh Damani (Wed Mar 8 2000 6:2 IST)
I think it is about Rs 4000 crore (Rs 40 billion). It is heavily margined so no immediate risk exists. However 2 days ago, 40 percent of combined BSE and NSE volume was Himachal. That's an amazing statistic.
hetal (Wed Mar 8 2000 6:0 IST)
Should we buy or sell Nirma. What are the prospects of the company?
Mr Ramesh Damani (Wed Mar 8 2000 6:3 IST)
Hetal, it's hard to give a call on an individual stock. What's your view?
alok (Wed Mar 8 2000 6:4 IST)
hi mr damani, what is your view on the dharavi counters of the b group that are reaching new highs every day? Are there some solid stories in any of those or is it manipulated? IN CASE THERE ARE GOOD INVESTMENTS, PLEASE LET ME KNOW!
Mr Ramesh Damani (Wed Mar 8 2000 6:7 IST)
alok - remember the saying when the public gets wise, the wise get out. Investments are a serious biz not to be done lightly on tips. Which are the stocks your friends are touting?
hetal (Wed Mar 8 2000 6:7 IST)
Where do you think the BSE index will reach on April 15, 2000?
Mr Ramesh Damani (Wed Mar 8 2000 6:9 IST)
Hetal - the only use for stock market forecasters is to make fortune tellers look good. Having said that, we might see some selling after April to lock in long term capital gains that people have enjoyed.
hetal (Wed Mar 8 2000 6:8 IST)
I am very bullish on Nirma. I think you should buy the stock at Rs 1000 levels.
Mr Ramesh Damani (Wed Mar 8 2000 6:10 IST)
Thanks for the advise Hetal.
rupal (Wed Mar 8 2000 6:7 IST)
Mr Damani, let me ask your advice. I have Rs 50,000 to invest and want to do it in stocks. Can you suggest which compnaies or sectors i should put it in? I promise not to hold you responsible for any damage!!
Mr Ramesh Damani (Wed Mar 8 2000 6:12 IST)
Rupal - Thx for joining in. Typically, with Rs 50,000 it is better to enter a good mutual fund. Stock-wise I think you are getting good value in FMCG stocks, utility or telecom stocks.
tarun (Wed Mar 8 2000 6:10 IST)
good evening, mr ramesh. why did the market fall today?
Mr Ramesh Damani (Wed Mar 8 2000 6:14 IST)
tarun - gooe evening. The market is falling of its own weight. It's become a financial Disney Land and the merry-go-round may be taking a break
hetal (Wed Mar 8 2000 6:15 IST)
What about MTNL. Should I buy or sell. This seems to be your favourite scrip!
Mr Ramesh Damani (Wed Mar 8 2000 6:18 IST)
Hetal - you have been following me. I think it should go up after its NYSE listing scheduled for March 15. It's probably the cheapest telecom stock and its last mile access is valuable. If the government holding were to go below 51%, it would lead to a blast.
Manish Thakore (Wed Mar 8 2000 6:14 IST)
Mr. Damani, good evening this is Manish Thakore from Chicago. I wanted to know your view on the Zee TV and Wipro upcoming ADRs
Mr Ramesh Damani (Wed Mar 8 2000 6:20 IST)
Dear Manish - Good morning and thx for joining in. The office also says hello. Wipro at $50 billion is not a great call for a service company. Zee has also been hyped. In the next two years we will be going from broadcasting to narrowcasting. Good looking
soumitro (Wed Mar 8 2000 6:19 IST)
I am an NRI based in Hong Kong. Wanted to check out a whether you have any idea when futures and options would be ushered in the BSE...Are broking houses in India, including yours, equipped to handle F&O?
Mr Ramesh Damani (Wed Mar 8 2000 6:21 IST)
soumitro - F&O will start in May 2000. Yes, we should be doing F&O
hetal (Wed Mar 8 2000 6:21 IST)
Thanks for your opinion on MTNL. I will definitely buy tomorrow. Please give your expert view on VSNL too.
Mr Ramesh Damani (Wed Mar 8 2000 6:23 IST)
hetal - I am not as bullish on VSNL since long distance rates are coming down and private ISP players are moving in. If a partner picks a stake this is whole new ballgame though.
MThakore (Wed Mar 8 2000 6:23 IST)
Mr. Damani, I know it's been hyped a lot, but in the market, India is presently the flavor of the month/year with Infosys and Satyam. What's your take on Satyam (ADR). Are ther any new upcoming good ADR's. Say hi to everyone in the office, can you mail me your email address. Thanks.
Mr Ramesh Damani (Wed Mar 8 2000 6:25 IST)
Manish - SSI (Software Solutions) and Silverline are in the pipeline. Rumours are that DSQ will join too. IT stocks are now linked to NASDAQ and will follow the mother index.
soumitro (Wed Mar 8 2000 6:26 IST)
What do you think of Harshad Mehta and Ketan Parekh?
Mr Ramesh Damani (Wed Mar 8 2000 6:29 IST)
soumitro - Harshad was smart but only a bull. Never a bear. Ketan has made some visionary calls and investments in Zee, Satyam. He deserves respect for that. However, lately the stocks he seems to be "recommending" seem to be a bit puzzling.
Mr Ramesh Damani (Wed Mar 8 2000 6:32 IST)
Bye guys. Meet you next week.
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