'The market seems poised to go higher'
On a rainy day in Bombay, Ramesh S Damani turns bullish on the stock market. He is worried about the large outstanding positions in the market but thinks that the market is ready to take off. His top pick is Infosys with a target of Rs 10,500.
Mr Ramesh Damani (Wed Jul 12 19100 5:49 IST)
Hello everybody - it's raining like crazy in Bombay. Hope you are all dry. Thanks for joining in. Let's start.
vinod (Wed Jul 12 19100 5:52 IST)
are you worried about the concentrated o/s positions in select few stocks?
Mr Ramesh Damani (Wed Jul 12 19100 5:54 IST)
vinod. Yes I am worried. However the market seems poised to go higher.
mankad (Wed Jul 12 19100 5:53 IST)
what's your view on infosys results?
Mr Ramesh Damani (Wed Jul 12 19100 5:54 IST)
mankad - infy is a good buying opportunity. Yesterday's fake seemed like a classic bull trap.
abinav (Wed Jul 12 19100 5:52 IST)
finally mr. damani at least you have logged in...what happened today? where did the buying vome from?
Mr Ramesh Damani (Wed Jul 12 19100 5:55 IST)
abinav - looks like we had a bull trap. Market has broken out. NASDAQ should have a good day today and we would be off to the races
dhiraj (Wed Jul 12 19100 5:55 IST)
where do you see the growth coming for infosys and satyam?
Mr Ramesh Damani (Wed Jul 12 19100 5:56 IST)
Dhiraj - I am partial to INFY. Infy is likely to have another good quarter for Q2. Q3 I would worry about payroll costs.
abinav (Wed Jul 12 19100 5:55 IST)
what's your one year price target for infosys? Is the figure of 600 cr profit for this full year acheivable just from organic growth?
Mr Ramesh Damani (Wed Jul 12 19100 5:57 IST)
abinav - early estimates point to 600-650 organic. We should see INFY touch 10500 soon.
dhiraj (Wed Jul 12 19100 5:56 IST)
why? because of the spurt in the staff?
Mr Ramesh Damani (Wed Jul 12 19100 5:57 IST)
dhiraj - yes, good order book and migration to e commerce.
rahulg (Wed Jul 12 19100 5:57 IST)
ESSEL PACK—BONUS—VIEWS—TARGET
Mr Ramesh Damani (Wed Jul 12 19100 5:58 IST)
rahulg - I am personally not too hot on Essel. My friends who follow it like it a lot
abinav (Wed Jul 12 19100 5:58 IST)
what's expectation from wipro?
Mr Ramesh Damani (Wed Jul 12 19100 5:59 IST)
abinav - co's doing well. (wipro)
dhiraj (Wed Jul 12 19100 6:0 IST)
why are you skeptical about staff cost in the third quarter for infy?
Mr Ramesh Damani (Wed Jul 12 19100 6:0 IST)
dhiraj - esops. If stock price does not perform, they will have to pay more in salaries or lose employees. This will effect margins.
dhiraj (Wed Jul 12 19100 6:1 IST)
where do you see the growth coming from for infy - e-comm or generic software services?
Mr Ramesh Damani (Wed Jul 12 19100 6:1 IST)
dhiraj - for the next few Q's from e commerce.
vinayak (Wed Jul 12 19100 6:2 IST)
how was today's index futures? is the market increasing in size or will it take time?
Mr Ramesh Damani (Wed Jul 12 19100 6:3 IST)
vinayak - it is increasing. We are trading 300 + contracts today. We should get to 1000 in 2 months time
seanfonseca (Wed Jul 12 19100 6:2 IST)
RAMESH HI! WHAT DO U THINK OF GRASIM INDS
Mr Ramesh Damani (Wed Jul 12 19100 6:4 IST)
sean - good if you are bullish on cement. I do see good times for cement.
wannabepunter (Wed Jul 12 19100 6:3 IST)
Sir, are we gonna see a rally in old economy stocks?
Mr Ramesh Damani (Wed Jul 12 19100 6:5 IST)
wannabepunter - this rally should be a mix of stocks not just IT. This is a big plus I believe. Look at Nestle, HDFC Bank, HDFC, ABB. They are all breaking out of deep sleep.
wannabepunter (Wed Jul 12 19100 6:5 IST)
But the huge capacities, heavy competition?
Mr Ramesh Damani (Wed Jul 12 19100 6:6 IST)
wannabepunter - consolidation in the industry will lead to higher realisations.
dhiraj (Wed Jul 12 19100 6:6 IST)
what's your view on hdfc bank 83% growth in first quarter profit?
Mr Ramesh Damani (Wed Jul 12 19100 6:6 IST)
dhiraj - looks great funda and technically.
rahulgi (Wed Jul 12 19100 6:6 IST)
SONATA SOFT ---~90% JUMP Q1/99VS Q1/00 BUT NO JUMP –Q4/99 VS Q1/00 IS IT A BUY?? STOCK SPLIT(S.S.) –EX S.S . RATE PL.
Mr Ramesh Damani (Wed Jul 12 19100 6:7 IST)
rahulgi- sonata was up 16%. over 600 I think. However buy liquid stocks in this rally unless you are really convinced.
rahulgi (Wed Jul 12 19100 6:7 IST)
ZEE----ARE U BULLISH ON THIS ?? MY VIEW STAR TV---9-10PM –KAUN BANEGA CROREPATI SONY 10-11-----SHEKHAR SUMAN 11.15-11.45—EK MAHAL HO… & ZEE HAS NO HIT SERIAL RUNNING AT PRESENT
Mr Ramesh Damani (Wed Jul 12 19100 6:8 IST)
rahulgi - looks tough for zee. Star has a lot of money to waste.
abinav (Wed Jul 12 19100 6:7 IST)
in spite of the merger with Times Bank just 83% growth is what worrying me and they are late in getting into the net based activities won't that slow down the growth
Mr Ramesh Damani (Wed Jul 12 19100 6:9 IST)
abinav - remember SBI was at 250 HDFC bank was at 50. Today it is costlier. Aditya Puri is doing a good job. Private banks are going to demolish PSU banks. HDFC would be the big winner.
amit bagga (Wed Jul 12 19100 6:9 IST)
ramesh which stock do u think is a better buy right now wipro or infosys?
Mr Ramesh Damani (Wed Jul 12 19100 6:10 IST)
amit - i prefer infy. After this result it may even be good value.
rahulgi (Wed Jul 12 19100 6:9 IST)
sonata should see q1 vs q1 or q4 vs q1
Mr Ramesh Damani (Wed Jul 12 19100 6:10 IST)
rahul q1 -v/s q1 is correct way to see it.
seanfonseca (Wed Jul 12 19100 6:8 IST)
Ramesh-you said bullish on cement. But Grasim holds 17% in Birla AT&T a convergence stock?
Mr Ramesh Damani (Wed Jul 12 19100 6:11 IST)
sean - that would be a bonus.
dhiraj (Wed Jul 12 19100 6:10 IST)
then why not ICICI Bank or GTB?
Mr Ramesh Damani (Wed Jul 12 19100 6:11 IST)
dhiraj - ICICI is a close 2nd to HDFC Bank. GTB not in the same league.
anekar (Wed Jul 12 19100 6:9 IST)
what about polaris why it is not moving up
Mr Ramesh Damani (Wed Jul 12 19100 6:12 IST)
anekar - B group has not participated. It has had a great run
Mr Ramesh Damani (Wed Jul 12 19100 6:13 IST)
Everyone needs to leave early today due to the rain in Bombay. Last two-three Q's please
seanfonseca (Wed Jul 12 19100 6:12 IST)
sir what about pharma how does orchid chem compare with its peers good R& D whats u reccom /target price
Mr Ramesh Damani (Wed Jul 12 19100 6:13 IST)
sean - I don't follow pharma and orchid in particular.
rahulgi (Wed Jul 12 19100 6:13 IST)
ONLINE BROKING DOESN’T ALLOW “SHORT SELL” UNLESS IT IS THERE IN MY A/C NO BADLA ALSO--- ALSO—THE QUOTE I SEE –WILL NOT MATCH THE QUOTE AT WHICH I BOOK !! AM I RIGHT ??
Mr Ramesh Damani (Wed Jul 12 19100 6:14 IST)
rahulg - not sure. have not tried it yet. However they will not allow you to sell short.
rahulgi (Wed Jul 12 19100 6:14 IST)
WHEN WILL U START YOUR DOT-COM---HOW MUCH TIME WILL IT TAKE FOR RSD?? YOUR RECOMMENDATIONS –WILL IT BE FREE??
Mr Ramesh Damani (Wed Jul 12 19100 6:14 IST)
rahul yes free. Some one is working ion it.
seanfonseca (Wed Jul 12 19100 6:14 IST)
sir reports have it that indusind bank & centurion bank are on merger talks which is a better bet. indusind/centurion
Mr Ramesh Damani (Wed Jul 12 19100 6:15 IST)
sean - Centurion
rahulgi (Wed Jul 12 19100 6:14 IST)
HDFC---+PIZZA HUT---?? DID U LIKE THAT DIVERSIFICATION??
Mr Ramesh Damani (Wed Jul 12 19100 6:15 IST)
rahul - i like pizza and pizza hut. I am happy. Pizza Huts need a lot of real estate I guess?
amit bagga (Wed Jul 12 19100 6:14 IST)
ramesh why is it that all the hotel stocks in india are not doing well?
Mr Ramesh Damani (Wed Jul 12 19100 6:16 IST)
amit - Indian Hotels is a good value buy. Coming glut of hotel rooms in Bombay. Drive to the airport and see.
Mr Ramesh Damani (Wed Jul 12 19100 6:16 IST)
Thanks everyone. Will see you next week. Have a prosperous week ahead.
Money
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