'Wait till the NASDAQ stabilises'
Ramesh S Damani feels that the NASDAQ is on the verge of entering a bear phase and if that happens all tech stocks will get slammed. He expects the Indian market to disconnect the umbilical cord with the NASDAQ since our fundamentals our different. But he says it could be painful till then.
Mr Ramesh Damani (Wed Apr 12 19100 6:38 IST)
Hello everybody thanks for joining in. Let's start.
Salil Kamat (Wed Apr 12 19100 4:50 IST)
Mr. Damani Hi! I am a new investor and have purchased DSQ Software at a very high price of Rs 2,150 approx per share. Kindly tell me at what rate is it right to sell? Thanks.
Mr Ramesh Damani (Wed Apr 12 19100 6:39 IST)
Salil - DSQ has had a good run. However NASDAQ is on the verge of entering a bearish phase. If it does, all tech stocks will get slammed including DSQ.
Anand (Wed Apr 12 19100 5:22 IST)
Hello Sir i have purchased HCL Infosys Ltd. @ Rs. 550 what rate is it right to sell? is it the right time to buy Rolta and Zee. Thanks.
Mr Ramesh Damani (Wed Apr 12 19100 6:40 IST)
Anand - see my answet to Salil.
mukunddusad (Wed Apr 12 19100 5:51 IST)
Hello Mr. Damani, I have purchased VSNL at Rs 750, Sterlite at Rs 1020. Although VSNL is up at Rs 1850 levels, i want to know whether I should hold on or sell it off. Also please advise if Sterlite will reach Rs 1700-1800 levels. Thanks
Mr Ramesh Damani (Wed Apr 12 19100 6:42 IST)
Mukund - Sterlite should report good results. I would book some profit on VSNL.
Mudit (Wed Apr 12 19100 6:24 IST)
Hi Mr. Damani, I've got some shares of UTI Bank. What will be the ideal price for selling them? Also,what are the chances of Arvind Mills bouncing back?
Mr Ramesh Damani (Wed Apr 12 19100 6:43 IST)
Mudit - Arvind Mills' prospects look bleak. I would hold UTI Bank.
vinoo (Wed Apr 12 19100 6:33 IST)
are the markets consolidating at the current levels? where do you see the money coming in from the FIIs flowing into?
Mr Ramesh Damani (Wed Apr 12 19100 6:44 IST)
vinoo - market is connected via an umbilical cord to NASDAQ right now. At some time it will disconnect since our funda's our different. However expect a lot of pain till then.
abhi (Wed Apr 12 19100 6:43 IST)
mr. damani why did infosys fall inspite of market beating performance today?
Mr Ramesh Damani (Wed Apr 12 19100 6:46 IST)
abhi - couple of reasons. Its market cap is pretty high. NASDAQ is down. Everyone seem to have bought it. Looks a bit top heavy.
abhi (Wed Apr 12 19100 6:45 IST)
mr. damani what's happening to HFCL? inspite of the company bagging lions share of DoT orders and it becoming debt free and CPH picking up a stake? What's your view on the stock.
Mr Ramesh Damani (Wed Apr 12 19100 6:47 IST)
abhi - HFCL is a speculator favourite. Its not for the amateur investor. I would avoid it.
vinoo (Wed Apr 12 19100 6:46 IST)
mr. Damani what's happening to the cyclicals. What's your view on RIL after its announcement of buyback at rs 303? can i short the stock?
Mr Ramesh Damani (Wed Apr 12 19100 6:48 IST)
vinoo - Reliance is quoting at Rs 305 in the curb in Calcutta. It may slide to 275-280. RIL's announcement was disappointing.
PCBANSAL (Wed Apr 12 19100 6:47 IST)
Mr Ambani is always harping that the value of Reliance Share is more than Rs 600 but the buy back price has been determined by him at Rs 303. Why such a down price?
Mr Ramesh Damani (Wed Apr 12 19100 6:49 IST)
PCBANSAL - It is Rs 600 if you add back the bonus.
abhi (Wed Apr 12 19100 6:49 IST)
Mr. damani why was sebi and the exchanges silent or rather did not impose any sell side margins when the market was falling like crazy last week. But when it comes to a bull market they have become active to kill it by imposing severe margins?
Mr Ramesh Damani (Wed Apr 12 19100 6:51 IST)
abhi - i think SEBI is pretty neutral. Bears help a slide by buying stock. We should not keep changing margins. Let the market decide.
abhi (Wed Apr 12 19100 6:51 IST)
mr. damani how much will RIL's announcemnt affect the market sentiment tommorrow?
Mr Ramesh Damani (Wed Apr 12 19100 6:52 IST)
abhi - RIL's announcement will be a negative.
sunil (Wed Apr 12 19100 6:54 IST)
what do you read of the market ?
Mr Ramesh Damani (Wed Apr 12 19100 6:56 IST)
sunil - NASDAQ is headed into a bear phase. I see pain ahead though not necessarily a bear market.
abhi (Wed Apr 12 19100 6:57 IST)
Then why do they impose margins of more than 50 per cent in stocks like Pentafour which is a highly liquid counter? I can understand if the same is in a stock in B group?
Mr Ramesh Damani (Wed Apr 12 19100 7:3 IST)
abhi - to control excessive outstanding positions in the counters.
Nikhil (Wed Apr 12 19100 7:0 IST)
mr damani, do u think prices of stocks like zee and wipro having PE ratios of 500-600 justified?
Mr Ramesh Damani (Wed Apr 12 19100 7:1 IST)
nikhil - probably not in a bear market
mahesh (Wed Apr 12 19100 6:59 IST)
hello! have you read the article on indian pharma business in the business world how do the prospects look?
Mr Ramesh Damani (Wed Apr 12 19100 7:2 IST)
mahesh - i missed that article. What does it say
mahesh (Wed Apr 12 19100 7:5 IST)
it is about the huge generics market in the US and how the indian pharma companies readied themselves for the opportunity as a lot of drugs which have a market of billions of dollars are going off patent and india has a cost advantage here too. all the top pharma names that come to our mind are mentioned
rinks (Wed Apr 12 19100 7:2 IST)
Please let me know if one should invest right now or wait?
Mr Ramesh Damani (Wed Apr 12 19100 7:4 IST)
rinks - wait till nasdaq stabilises. Invest for the long term
mahesh (Wed Apr 12 19100 7:3 IST)
mr. damani, you talk of telecommunication what exactly you are talking about? please mention the things which will be i n demand
Mr Ramesh Damani (Wed Apr 12 19100 7:5 IST)
mahesh - we have 3 tel lines per 100 people. In 10 years it may hit 50. So a big boom for carriers, suppliers, billing co's and the like. Rates will come down but volume will expand.
rinks (Wed Apr 12 19100 7:5 IST)
Please tell me why Shyam Telecom went upto 983 & now it`s still not stablising or going high even today.
Mr Ramesh Damani (Wed Apr 12 19100 7:6 IST)
rinks -many stocks have fallen 50% or more.
chetan (Wed Apr 12 19100 7:5 IST)
revenue model for Indian IT stocks is different from IT stocks on NASDAQ. Here I see a long story of consistent growth and a boom in low cost IT enabled services.What is your advice
Mr Ramesh Damani (Wed Apr 12 19100 7:9 IST)
chetan - you are right but service co's dont get a PE of 200 or so. Once growth slows and it will the PE will contract. Thats the danger. Very few stocks can mantain a PE of 40+ for over 10 years.
rinks (Wed Apr 12 19100 7:8 IST)
Is Shyam Telecom a good buy at present?
Mr Ramesh Damani (Wed Apr 12 19100 7:9 IST)
rinks - i don't follow the stock day to day
Nikhil (Wed Apr 12 19100 7:4 IST)
i dont get u .... even after the correction in the markets, they still have very high PEs. would you buy/sell these stocks at these levels?
Mr Ramesh Damani (Wed Apr 12 19100 7:10 IST)
Nikhil - In the markets, caveat emptor. Buyer beware. They may present trading opportunities.
rahul (Wed Apr 12 19100 7:9 IST)
SEE "MASCON GLOBAL"—( in the compulsory rolling settlement from may 8)-from RS 30---1200 IN ONE MONTH --"alli-cap" has this script in its portfolio—a manager from this fund had told in the "cnbc"----where was "S E B I"—S E B I was BLIND&will remain "blind"!!!! THIS SHOULD be TERMED AS "PRICE-FIXING SCAM"—ONLY 100 SHARES WAS BEING TRADED OF M.G. FROM --RS 30—THE DAY THEY ANNOUNCED THE RESULTS-----till I think Rs 600-700 would u like to comment!!!!---I think u will…….!!!!!
Mr Ramesh Damani (Wed Apr 12 19100 7:12 IST)
rahul - Mascon got listed through a reverse merger with a closely held co. Hence the lack of float. Pacific Century of Honk Kong recently used the same technique. Makes listing quicker.
rahul (Wed Apr 12 19100 7:11 IST)
A SHARE IN THE ROLLING SETTLEMENT HAS TO BE IN THE COMP.DEMAT LIST????
Mr Ramesh Damani (Wed Apr 12 19100 7:13 IST)
rahul -yes. You cant change paper in a rolling settlement. Thx
rinks (Wed Apr 12 19100 7:14 IST)
Please advice on which scrips to buy at present?
Mr Ramesh Damani (Wed Apr 12 19100 7:15 IST)
rinks - take a look at Bharat Electronics. Closed at 85. Company should earn Rs 12+ for the 99-00. Next year should be good due to increase in Defence Budget. Price includes a Rs 3 dividend probably. Good Value
suman (Wed Apr 12 19100 7:13 IST)
mr.damani, what do feel about S.B.I. right now for buying short term?
Mr Ramesh Damani (Wed Apr 12 19100 7:16 IST)
Suman - sbi may make a good trading bet. I expect good results thanks to the cut in interest rate. Portfolio of bonds will do well.
rinks (Wed Apr 12 19100 7:16 IST)
Explain why do indian markets follow NASDAQ so closely in their minds?
Mr Ramesh Damani (Wed Apr 12 19100 7:19 IST)
rinks - markets are NOT LOGICAL they are psychological. Right now NASDAQ is the bellwether exchange. Tomorrow it could be the price of gold, or markets in Japan. What has driven this bull market is technology-hence importance of NASDAQ
rahul (Wed Apr 12 19100 7:12 IST)
Reliance sets maximum buyback price at Rs 303, much below market expectation!! comment!!
Mr Ramesh Damani (Wed Apr 12 19100 7:17 IST)
Rahul - RIL will probably slide to 275-280 levels.
rahul (Wed Apr 12 19100 7:20 IST)
will "a" group shares will in "crs",any time in the future???
Mr Ramesh Damani (Wed Apr 12 19100 7:22 IST)
RAHUL - good point. Worldwide stocks are traded in rolling and speculation is done in Derivatives. The first stocks in are getting punished. SEBI has decided that no "A" group stocks should go into rolling for now.
mahesh (Wed Apr 12 19100 7:17 IST)
you didn't answer me on indian pharma sir.
Mr Ramesh Damani (Wed Apr 12 19100 7:22 IST)
mahesh - i have not read the article. Will talk about it next week.
suman (Wed Apr 12 19100 7:21 IST)
SHRI.DAMANI which shares do you advise to buy as of now?
Mr Ramesh Damani (Wed Apr 12 19100 7:23 IST)
suman - see my answer on Bharat Electronics
Mr Ramesh Damani (Wed Apr 12 19100 7:25 IST)
Thanks everyone. Have a prosperous week and hop to see you all next week. Bye for now.
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