'Watching the NASDAQ is faddish'
Ramesh S Damani expects the market to see higher levels shortly.
He feels that the Sensex should test its old high of 6000 over the summer and monsoon.
mani (Wed Mar 29 19100 5:54 IST)
why is the market falling?
Mr Ramesh Damani (Wed Mar 29 19100 5:51 IST)
mani - mainly due to year end considerations. I think the market will see higher levels shortly.
Nikhil (Wed Mar 29 19100 5:55 IST)
Mr Damani, have the IT stocks bottomed out? or will we have to wait further for a bounce-back?
Mr Ramesh Damani (Wed Mar 29 19100 5:56 IST)
Nikhil - I think we should see sunny days ahead for IT stocks. A rally should begin soon
mani (Wed Mar 29 19100 5:54 IST)
why is it that the software is not sustaining at higher levels? Seondly how relevant is NASDAQ movements to indian markets, NASDAQ also has biotech stocks in the index which are very limited in supply in india. not a single dedicated portal stock is listed in india which are there in the tech heavy NASDAQ what's ur opinion?
Mr Ramesh Damani (Wed Mar 29 19100 5:58 IST)
Mani - watching NASDAQ is faddish it is just a shorthand for tech stocks euphoria worldwide. Also, briefly Cisco became the most valuable listed co in the world. WOW
zulu (Wed Mar 29 19100 5:56 IST)
what's happening in the cyclicals are they not in the reckoning at all?
Mr Ramesh Damani (Wed Mar 29 19100 5:59 IST)
zulu - some cyclicals are moving like Bajaj Auto etc. I think good cyclicals in cement etc will attract value based buying,
alokverma (Wed Mar 29 19100 5:57 IST)
what is your short term target for the sensex?
Mr Ramesh Damani (Wed Mar 29 19100 6:0 IST)
alok - my instinct tells me that over the summer and by the monsoons the index will test its old highs of 6000.
Mahesh (Wed Mar 29 19100 5:57 IST)
hello Mr. Ramesh, do you think that the software stocks should move up after the correction or is this their real valuation
Mr Ramesh Damani (Wed Mar 29 19100 6:1 IST)
Mahesh - I think software will show some new highs. However, leadership will start going towards the large cap. mediocore cos. may not perform.
alokverma (Wed Mar 29 19100 6:1 IST)
what do u think of wipro after adr?
Mr Ramesh Damani (Wed Mar 29 19100 6:4 IST)
alok if Wipro accquires and open itself, it could be a good bet. At current conditions it seemed overpriced when it was at 9500+
deepak (Wed Mar 29 19100 6:2 IST)
what do u think about Indian dot com companies in general?
Mr Ramesh Damani (Wed Mar 29 19100 6:5 IST)
Deepak - It's hard to find cos. with a revenue mode. Look for dot.com cos. that can't exist in the physical world (eg Ebay). If they are unique to the internet they will survive
Mahesh (Wed Mar 29 19100 6:6 IST)
how does Crisil look to you in medium to long term
Mr Ramesh Damani (Wed Mar 29 19100 6:10 IST)
Mahesh - Crisil is good value at Rs 400 but mgmt has not been able to deliver growth and lots of turnover among key people. If infrastructure spending goes up, they would benefit.
mani (Wed Mar 29 19100 6:9 IST)
i read your last transcript in which you had stated about the bull run in NASDAQ which you expected to flow down into indian markets why then did u say that if u now say looking at NASDAQ is fadish?
Mr Ramesh Damani (Wed Mar 29 19100 6:12 IST)
mani - everyone seems to be doing it so it becomes faddish. After some time the two markets will be delinked. As an observation see Thailand - they have no tech sector and the index is stuck at 400 - (lifetime high 1450 or so).
nikhilsh (Wed Mar 29 19100 6:11 IST)
why have companies in rolling settlement mode fared so badly? any logical reason?
Mr Ramesh Damani (Wed Mar 29 19100 6:16 IST)
nikhilsh - in rolling you cannot net your trade across days. You pay or deliver. This scares away the "day -trader" who likes to keep positions open for a week without any payment. SEBI will have to rethink the fast move to rolling. Volumes will tend to dry up in rolling.
janki (Wed Mar 29 19100 6:11 IST)
Thank you for Tasty Bite Mr Damani. How long should one hold it?
Mr Ramesh Damani (Wed Mar 29 19100 6:17 IST)
janki - I am glad you bought Tasty Bite. I have personally bought to hold it but sometimes these microcaps can be tricky. If you are liable to loose patience book some profits.
Sumeer (Wed Mar 29 19100 5:56 IST)
Mr Damani, Why is DSQ falling down so much inspite of so much good news in it. What would you advise on this stock?
Sumeer (Wed Mar 29 19100 5:58 IST)
Mr Damani, Regarding MTNL and the High court's decision to order it to pay 200 cr taxes , do you still advise a hold till the NYSE listing ?
Mr Ramesh Damani (Wed Mar 29 19100 6:19 IST)
Sumeer - dsq is a speculator favourite and as such fundamentals don't count much. MTNL is dogged with bad luck. I am getting a bit weary of it.
nikhilsh (Wed Mar 29 19100 6:13 IST)
does the 'bad mgmt' tag still hold true for penta companies?
Mr Ramesh Damani (Wed Mar 29 19100 6:20 IST)
nikhlish - Penta Mgmt is not in the category of say Aziz Premji but they are getting better.
Keshav (Wed Mar 29 19100 6:20 IST)
what is your view on Sterlite ? It was on the lower circuit today at 799 on the BSE. It has come of a high of 1100+ and corrected significantly. The restructuring meeting is scheduled for 4th April.
Mr Ramesh Damani (Wed Mar 29 19100 6:21 IST)
keshav - Sterlite looks good. The optic fibre business is moving. I think the company should announce good results.
Mr Ramesh Damani (Wed Mar 29 19100 6:23 IST)
any last questions folks we are almost out of time.
nikhilsh (Wed Mar 29 19100 6:24 IST)
what do u think about the biotech sector? do indian companies hold promise? or r they getting high valuations just becuz of 'new tech sector' tag?
Mr Ramesh Damani (Wed Mar 29 19100 6:25 IST)
nikhlish - biotech has a lot of promise. However we need to find the Narayan Murthy of the biotech world. Ford established the auto industry in Detroit, Morita -- Sony Electronics. Biotech needs a visionary.
mahesh purohit (Wed Mar 29 19100 6:25 IST)
u have criticized the slow movement in privatisation or disinvestment. when will it really start moving
Mr Ramesh Damani (Wed Mar 29 19100 6:27 IST)
mahesh - Iran which is 20 years behind privatised its auto co. Govt in India just does not move. It is extremely sorry.
tarun (Wed Mar 29 19100 6:24 IST)
hi mr damani i just read on rediff corporate news that usha beltorn will transfer its IT division to another company. since i have heard you recommend that stock before, what is a good price to buy it?
Mr Ramesh Damani (Wed Mar 29 19100 6:28 IST)
Usha beltron has a 42% stake in Usha Comm. The mgmt may spin of those shares to Indian shareholders and list Usha Comm on NASDAQ. If they did that, it would be good. They are going to announce details of the restructuring soon.
Mr Ramesh Damani (Wed Mar 29 19100 6:29 IST)
Last question
mahesh purohit (Wed Mar 29 19100 6:28 IST)
one of my uncles wanted to know how do you find SQL software
Mr Ramesh Damani (Wed Mar 29 19100 6:29 IST)
Mahesh have nit been following SQL. Thanks guys and lets chat next Wednesday.
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